2nd Nov 2026 02:14
(Alliance News) - Irish manufacturing activity expanded at a slower pace in October, S&P Global reported Monday.
The AIB Ireland manufacturing purchasing managers' index edged down to 55.2 points in October from 55.5 points in September.
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.
This was the lowest figure for three months, AIB said.
David McNamara, AIB chief economist, said: "The AIB Irish Manufacturing PMI indicates that the sector
maintained good momentum in October.
"Output rose solidly in October, although growth slowed from the four-and-a-half year high reached in September, with respondents citing continued robust order books. This was also reflected in a sharp rise in new orders and continued export orders growth. Given the healthy demand backdrop, employment expanded at a robust pace, as firms responded to rising workloads.
"Purchasing activity continued to grow strongly, linked to stock building efforts and increased order books. Existing stocks grew rapidly for an eight consecutive month, as firms maintained precautionary stockpiles in the current inflationary environment."
Input cost inflation accelerated compared to September, but was still below the peak reached in May.
"Higher input charges were mainly linked to higher energy, fuel and raw materials. With demand still
robust, many firms were able to increase selling prices and protect margins, with output price inflation rising in October," McNamara said.
Looking ahead, Irish manufacturers remain confident about the coming 12 months, S&P Global said, with 41% predicting an expansion and only 8% predicting a decline. Inflationary pressures continue to weigh on confidence, however.
S&P Global compiles the PMI each month using survey responses from a panel of around 250 manufacturers.
By Harvey Dorset, Alliance News reporter
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