1st Oct 2024 07:30
(Alliance News) - The factory sector in Ireland swung back into contraction last month, due to a sharp fall in export sales, according to purchasing manager's index survey results released by S&P Global on Tuesday.
The AIB Ireland manufacturing PMI registered 49.4 points in September, down from 50.4 points in August. The score was below the neutral 50-point mark for the first time in three months.
The survey showed export orders shrinking for the eighth straight month. Overall weak demand conditions caused factory output to fall for the first time since June, S&P Global said.
David McNamara, AIB chief economist, noted that the Irish manufacturing reading remains above the flash scores for September for the US and for the eurozone as a whole, but below that of the UK. Final PMI readings for those countries are due later Tuesday.
"Despite the subdued trading conditions, Irish manufacturers maintained an overall positive outlook regarding activity over the coming 12 months, with sentiment rising in September," McNamara added. "Respondents linked this to optimism around an improvement in market conditions and long-term expansion plans."
The PMI was compiled by S&P Global from the responses sent to a panel of 250 manufacturers in Ireland, with the responses gathered in the second half of the month.
By Tom Waite, Alliance News editor
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