4th Aug 2026 01:33
(Alliance News) - Conditions in Ireland's manufacturing sector strengthened in July, with strong output and job creation in the sector during the month, S&P Global reported Tuesday.
The Ireland manufacturing purchasing managers' index rose to 55.1 points in July from 54.9 point in June.
A reading above the 50.0-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 strongly in July, albeit the pace of increase eased slightly from June, with respondents citing continued healthy order books. This was also evident in a solid rise in new orders, but export orders growth slowed, as firms reported some headwinds from geopolitical uncertainty."
Employment growth in the manufacturing sector accelerated for the third time in the past four months, hitting the highest level recorded since May 2022.
S&P Global said anecdotal evidence suggests the increase in payroll numbers was driven by strong order books, business optimism and long-term effort to raise production capacity.
Manufacturers continued to face inflationary pressures, which resulted in a higher factory gate prices as efforts were made to pass on higher raw material and transportation costs.
The average cost burden jumped "sharply" in July, but the overall rate of inflation slowed for the second month in a row, falling to the lowest level since February.
"Looking ahead, Irish manufacturers' assessment of the outlook for activity levels over the coming year remains broadly optimistic. Around 46% predict an increase in output over the next year, while only 9% forecast a reduction," McNamara from AIB added.
The optimistic outlook was supported by hopes of a general improvement in market conditions, order books pipelines and planned new product development.
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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