1st Sep 2026 01:32
(Alliance News) - Irish manufacturers said new orders and output strengthened in August amid ongoing inflationary pressures, S&P Global reported Tuesday.
The Ireland manufacturing purchasing managers' index rose to 55.4 points in August from 55.1 points in July.
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 August, increasing to the highest level since April 2025, with respondents citing continued robust order books. This was also evidenced by the fastest rise in new orders since April 2022; but export orders growth remained muted, as firms reported some headwinds from geopolitical uncertainty.
"Purchasing activity was in line with July's modest outturn, following the surge in prior months, driven by frontrunning of stock building during the initial phase of the Middle East conflict. However, existing stocks grew for a sixth consecutive month, as firms maintained precautionary stockpiles."
Employment in the manufacturing sector expanded during the month, although the rate of job creation slowed from the multi-year high recorded in July.
Input price inflation continued to accelerate as manufacturers face greater energy, fuel, oil and raw material costs.
"In turn, output prices also increased markedly. Here, the pace of inflation slowed to a five-month low, but remained sharp," S&P Global explained.
Looking ahead, manufacturers expect increases in new orders and output to be sustained over the coming year, with sentiment rising to the highest level since January with almost half of all survey respondents expressing optimism.
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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