1st Apr 2026 02:07
(Alliance News) - Ireland's manufacturing sector expanded at a faster pace in March as output and new orders strengthened in March, S&P Global reported Wednesday.
The AIB Ireland manufacturing purchasing managers' index rose to 53.7 points in March from 53.1 in February.
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 March, accelerating from the pace observed in February, with respondents citing improved demand conditions. This was also evident in new orders growth and a surge in export orders, following two months of contraction. Cost inflation hit a 37-month high and survey respondents highlighted challenges from supply chain delays.
"While activity levels improved, the rate of input inflation accelerated sharply in February to the highest level since December 2022. Respondents noted some raw materials and energy costs as the main drivers. Nonetheless, with demand still strong, firms were able to increase output prices, albeit competition had limited the ability to pass on all of the cost increases."
S&P Global said stronger demand from abroad lifted March manufacturing orders, driven mainly by developed‑market buyers such as the UK.
The stronger demand drove a renewed rise in manufacturing backlogs in March, with firms adding staff at a solid pace despite job growth easing only slightly from February's 44‑month high.
Business confidence remained positive in March, but eased for a second month to its lowest level since July 2025.
"Around 44% predict an increase in output over the next year, while only 10% forecast a reduction. Manufacturers commented on positive projections for export orders and long-term business investment plans. This was offset by some concerns about the impact of the Middle East war on economic conditions," explained 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
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