Business Irish

Sunday 25 February 2018

Irish manufacturing growth hits 23 month high

Manufacturing output has experienced its strongest growth since July 2015, stock image: PA
Manufacturing output has experienced its strongest growth since July 2015, stock image: PA
Ellie Donnelly

Ellie Donnelly

Manufacturing output has experienced its strongest growth since July 2015, according to the latest Investec manufacturing report.

The growth was driven by a continued rise in new orders, which rose for the 11 month in a row.

The news shows that Irish manufacturers have yet to experience negative affects of Brexit, with firms continuing to increase their staff numbers, and invest in growing their levels of stock.

The improved client demand prompted a second successive rise in Backlogs of Work, with the rate of accumulation the most marked in the year to date, according to the report.

On the margin side, cost inflation remained sharp in June, with plastics and dairy products among the items cited as having increased in price over the month.

Read more: Irish economy experiences strong start to 2017

However the information from the Output Prices Index suggests that in many cases firms have been successful in passing increased costs to customers.

Firms profitability remained in positive territory for the second successive month.

“Business sentiment remained strongly positive in June, with more than six times as many respondents expecting production to increase over the coming 12 month as opposed to those anticipating a decline,” Philip O'Sullivan, Investec Ireland's chief economist said.

The growth rate in the manufacturing sector quickened in the three months to 30 June from the first three months of 2017, unsurprising given how leveraged Ireland is to international economic developments and the generally improving global backdrop.

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