1st Jul 2026 01:43
(Alliance News) - Ireland's manufacturing sector continued to grow in June, though the pace of expansion slowed from May's four‑year high, S&P Global reported Wednesday.
The AIB Ireland manufacturing purchasing managers' index fell to 54.9 points in June from 55.9 in May.
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, commented: "The expansion in June was due to sustained gains in output, new export orders and stock building.
"Output rose strongly in June, albeit growth eased slightly from May, with respondents citing continued buoyant order books. This was also evident in solid growth in new orders and export orders, which reached multi-year highs in May, as firms reported a boost to sales despite the geopolitical uncertainty."
Production volumes increased for the eighth straight month and S&P Global said positive demand conditions contributed to higher output levels.
Export sales grew with rising demand from clients in the US and Europe.
Work backlogs decreased for the first time in four months as Irish manufacturers boosted staff hiring.
"Purchasing activity eased in June following the surge in recent months, driven by frontrunning of stock building during the Middle East conflict. However, existing stocks reached the highest rate of growth since January 2023," McNamara added.
Suppliers' delivery times lengthened sharply in June, though the deterioration was less severe than in April and May, with many firms citing logistics issues and low supplier stocks linked to the Middle East conflict.
46% of survey respondents reported a rise in average cost burdens in June while only 1% reported a decline.
"Manufacturers mostly commented on higher fuel and transportation costs, alongside widespread rises in raw material prices. June data signalled a steep and accelerated rise in prices in charged by Irish manufacturing companies. The rate of factory gate price inflation was the steepest since December 2022 as firms again sought to pass on higher input costs," S&P Global explained.
Business activity expectations remained upbeat with 42% of respondents expecting an upturn in output volumes.
"Goods producers mostly commented on upbeat projections for customer demand and their long-term business development plans, while some noted headwinds from elevated global economic uncertainty and intense competition," S&P Global said.
S&P Global compiles the PMI each month using survey responses from a panel of around 250 manufacturers.
By Judy Amaca, Alliance News reporter Asia-Pacific
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