Tuesday 16 January 2018

Ireland's manufacturing growth fastest in eurozone

Colm Kelpie

Colm Kelpie

MANUFACTURING in Ireland expanded faster than any other eurozone country last month, new data shows.

The state overtook the Netherlands in the Purchasing Managers’ Index league table.

The PMI reading for last month in Ireland was 54.9, compared with 54.4 for the Dutch.

Anything above 50 indicates expansion, while below that signals contraction.

Germany recorded a reading of 51.7. By contrast, the UK recorded a much larger reading of 56.

The overall reading for the Eurozone stood at 51.3, edging higher from 51.1 in September, according to the PMI index from international finance information firm Markit.

France and Greece were the only two countries in the Eurozone to see manufacturing decline.

Growth hit a near two-and-a-half year peak in Austria and ticked higher in Germany, Ireland and Spain.

The rates of contraction in France and Greece were the sharpest for four and three months respectively.

Eurozone manufacturing production and new orders both rose for the fourth consecutive month in October.

Markit chief economist Chris Williamson said the eurozone’s manufacturing economy is undergoing its strongest growth period for two-and-a-half years.

But he warned that the recovery remained “frustratingly slow”.

“While it is in some respects disappointing that the  PMI has failed to show a steeper pick

up over the last two months, the recent growth revealed by the survey indicates a marked turnaround in the health of the manufacturing economy,” Mr Williamson said.

“While the survey was signalling a 2-3pc annual rate of decline in industrial production earlier in the year, a 2-3pc rate of expansion is now being indicated.”

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