3rd Feb 2026 02:47
(Alliance News) - Ireland's manufacturing sector saw a slower start to the year, though firms remained upbeat about the outlook, S&P Global reported Tuesday.
The AIB Ireland manufacturing purchasing managers' index was at 52.2 points in January, unchanged from December.
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 modestly in January, slowing from the pace observed in December. Respondents noted that elevated global uncertainty acted as a sales headwind. This was also evident in sluggish growth of new orders and a fall in export orders. Nonetheless, some firms cited better demand in European markets."
Input cost inflation surged to a three‑year high in January, with firms widely reporting pricier raw materials and suppliers passing through rising wage costs.
Hiring in the manufacturing sector extended its growth for a 14th consecutive month and the speed of job creation accelerated to its fastest since July. S&P Global explained its driven by "long-term business development plans and projected improvements in customer demand.
"Looking ahead, Irish manufacturers maintained an upbeat assessment of the outlook for activity levels over the coming year. Around 51% predict an increase in output over the course of 2026, while only 7% forecast a reduction. Businesses were hopeful of improved economic conditions, both from domestic and international markets," said McNamara.
S&P Global compiles the PMI each month using survey responses from a panel of around 250 manufacturers.
By Judy Amaca, Alliance News reporter Asia-Pacific
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.