Tentative signs of ‘turnaround’ for manufacturing sector
Activity in the manufacturing sector improved in October, driven by a rise in output and new orders.
The latest AIB Manufacturing PMI shows that business conditions improved at the fastest pace since February.
The headline index increased to 51.5, from 49.4 in September.
Readings above 50 indicate overall growth in activity.
The Irish manufacturing PMI remains above the flash October readings for the euro zone and US and UK at 45.9, 47.8 and 50.3, respectively.
The data indicates that new orders improved for the first time in eight months and, although only modest, the rate of growth was the strongest since May 2022.
Manufacturers commented on a steady recovery in domestic demand and more supportive underlying economic conditions.
Meanwhile, export sales decreased for the ninth consecutive month, which was mainly attributed to weak European demand and overstocked customers.
Hiring also fell marginally for a second consecutive month, with respondents commenting on cautious hiring strategies and the non-replacement of voluntarily departing staff.
Today’s data shows that cost inflation eased to a four-month low amid softening commodity price pressures.
Irish manufacturers also maintained an overall positive outlook regarding activity over the coming 12 months, with sentiment rising in October.
Respondents linked this to optimism around an improvement in demand and forthcoming new projects.
Article Source – Tentative signs of ‘turnaround’ for manufacturing sector – RTE
