2nd Mar 2026 01:19
(Alliance News) - Ireland's manufacturing sector benefitted from an increase in demand in February, with the sector also continuing to add new jobs, S&P Global reported Monday.
The AIB Ireland manufacturing purchasing managers' index rose to 53.1 points in February from 52.2 points in January,
A reading above the 50-point neutral mark indicates an overall increase in month-on-month business activity, while a reading below signals a contraction.
David McNamara, AIB chief economist, said: "Output rose robustly in February, accelerating from the pace observed in January, with respondents citing improved demand conditions. This was also evident in growth new orders and a renewed rise in export orders, following two months of contraction. Firms cited better demand in Asia, the UK and US."
Cost inflation hit a 37-month high and survey respondents highlighted challenges from supply chain delays.
"Nonetheless, with demand strong, firms were able to increase output prices to somewhat protect margins, albeit competition had limited the ability to pass on all costs increases," AIB's McNamara added.
As firms aimed to boost production, the pace of job creation reached the strongest level since June 2022.
Looking ahead, around 46% of survey respondents expect an expansion of production volumes over the next 12 months, with only 7% anticipating a decline.
S&P Global said optimism remains strong, although it is less upbeat than in January, with manufacturers forecasting greater customer demand and planned expansion in export markets.
S&P Global compiles the PMI each month using survey responses from a panel of around 250 manufacturers.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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