1st Oct 2026 01:27
(Alliance News) - Irish manufacturing activity expanded at an accelerated rate in September and the 12-month outlook was broadly positive, S&P Global reported Thursday.
The AIB Ireland manufacturing purchasing managers' index edged up to 55.5 points in September from 55.4 points in August.
A reading above the 50.0-point neutral mark indicates an overall month-on-month increase in business activity, while a reading below signals a contraction.
David McNamara, AIB chief economist, said: "The expansion in September was due to sustained gains in output, new orders and employment.
"Output rose rapidly in September, increasing to the highest level since March 2022, with respondents citing continued robust order books. This was also reflected in a sharp rise in new orders, and an acceleration in export orders growth.
"Given the healthy demand backdrop, employment expanded at a solid pace, as firms responded to rising workloads. Purchasing activity continued to grow strongly, but manufacturers noted delivery time delays linked to a shortage of freight capacity and shipping."
Input cost inflation accelerated for the second month in a row, reaching the highest level since June, which survey respondents attributed to energy, fuel and transport costs.
As a result, factory gate price inflation also reached a three-month high as manufacturers passed on fuel surcharges from suppliers.
Looking ahead, manufacturers expressed a positive sentiment towards the 12-month outlook.
38% of the surveyed manufacturers expect production volumes to rise, versus only 11% who anticipate a reduction.
"However, the resulting index pointed to a moderation in overall business optimism to the lowest for five months. Anecdotal evidence suggested that geopolitical uncertainty and rising inflationary pressures had weighed on confidence across the Irish manufacturing sector in September," S&P Global explained.
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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