Saturday 22 November 2014

Irish manufacturing clocks up 14 straight months of growth

Sarah Stack

Published 02/08/2014 | 02:30

The stars of European Union (EU) membership sit on a euro sign sculpture outside the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, on Wednesday, March 5, 2014. A month after saying he needs more data to make a decision, stronger-than-expected output and inflation and rising economic confidence might spare the European Central Bank president for now from radical steps such as negative rates. Photographer: Ralph Orlowski/Bloomberg
The stars of European Union (EU) membership sit on a euro sign sculpture outside the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, on Wednesday, March 5, 2014. A month after saying he needs more data to make a decision, stronger-than-expected output and inflation and rising economic confidence might spare the European Central Bank president for now from radical steps such as negative rates. Photographer: Ralph Orlowski/Bloomberg

Manufacturing output in Ireland has increased for the fourteenth consecutive month in a row.

The latest purchasing managers' index (PMI), which measures the health of the manufacturing industry, came in at 55.4 in July.

The figure is just a marginal rise from the 55.3 posted in June, when it was its strongest in more than three years, but shows continued growth,

Anything over 50 shows activity is growing, under 50 means the sector is contracting.

Economist Philip O'Sullivan, of specialist bank Investec, said the figures show the third quarter got off to a good start for the manufacturing sector.

"Client demand continued to improve both at home and abroad," he said.

"The new orders and new export orders indices have posted above-50 readings for 13 successive months now.

"Panellists identified the UK as a particular source of higher overseas demand, with sterling strength likely to be a contributory factor here."

Elsewhere, British manufacturing grew at its slowest pace in a year in July, possibly reflecting the prospect of higher interest rates at home and the impact of conflict in Ukraine.

The Markit/CIPS UK manufacturing PMI fell to 55.4 from 57.2 in June - its lowest level since July 2013 and well below forecasts.

Euro zone manufacturing growth also failed to accelerate as expected last month despite factories barely raising prices.

Markit's final July manufacturing PMI came in at 51.8, matching June's reading but below an earlier flash estimate of 51.9.

With inflationary pressure evaporating and factory activity shrinking faster in France, the region's second-biggest economy, the data will make grim reading for the European Central Bank ahead of its monetary policy meeting.

"The situation in the euro zone has clearly worsened from the promising signs of economic revival seen earlier in the year," said Chris Williamson, chief economist at Markit.

"The ECB will be eager to see the impact of the policy measures announced in June though these are clearly going to take some time to filter through."

Irish Independent

Promoted articles

Read More

Promoted articles

Editors Choice

Also in Business