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Ireland manufacturing sector growth slows in August as demand weakens

1st Sep 2025 01:28

(Alliance News) - Ireland's manufacturing sector expanded at a slower pace in August amid subdued demand conditions and a fall in export orders, S&P Global reported Monday.

The AIB Ireland manufacturing purchasing managers’ index fell to 51.6 in August, down from 53.2 in July.

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: "The rise in August was driven by continued growth in output and employment, but new orders growth stalled...Output rose at a slower pace in August, with respondents citing more subdued demand conditions. This was also reflected in the near stagnation in new orders growth and a renewed fall in export orders. Several firms cited the UK as a key source of weakness in client demand.

"The August survey showed a deceleration in input price inflation to the lowest rate since June 2024. However, some firms continued to note higher raw material costs. In contrast, output price inflation accelerated as manufacturers managed to pass on input price increases from earlier in 2025."

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

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.

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