2nd Jan 2026 03:01
(Alliance News) - Ireland's manufacturing sector expansion eased slightly in December, but firms were broadly optimistic about the prospect of output growth in 2026, S&P Global reported Friday.
The AIB Ireland manufacturing purchasing managers' index eased to 52.2 in December from 52.8 in November.
A reading above the 50.0 neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction.
David McNamara, AIB chief economist, said: "Output saw robust growth in December, with respondents citing stronger order books. This was also reflected in a continued rise in new orders, albeit export orders fell marginally.
"The December survey showed an acceleration in input price inflation, linked to raw material costs, an ongoing trend in the survey in recent months. However, output price inflation slowed to the weakest pace since May 2024, pointing to lower margins amid competitive market pressures."
For the 13th consecutive month, employment in Ireland's manufacturing sector has risen with the rate of job creation accelerating in December from the previous month as firms hired more staff to support the delivery of new projects and long-term capacity expansion plans.
Looking ahead, manufacturers expressed optimism about their 2026 production outlook, with 42% of those surveyed anticipating an increase in output versus only 6% forecasting a decline.
"However, the degree of optimism was weaker than the 11-month high seen in November," S&P Global said. "Anecdotal evidence suggested that hopes of a turnaround in demand conditions and planned new business expansion in export markets had underpinned confidence in the year ahead growth outlook."
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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