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Ireland’s manufacturing sector contracted in November, marking the first overall deterioration since the first Covid-19 lockdown in May 2020, survey results on Thursday showed.
The AIB/S&P Global manufacturing purchasing managers’ index fell to 48.7 points in November from 51.4 points in October. Ireland’s manufacturing PMI has fallen seven times in the past eight months.
Coming in below the 50 point no-change mark, it indicates a downturn in Ireland’s manufacturing sector. It also marks the first overall deterioration in operating conditions in the goods-producing sector since the first lockdown in May 2020.
The 2.7 point fall in the headline figure was reflected in four of its five components, most notably output. Stocks of purchases was the exception, with a slightly stronger increase than in October.
AIB explained: ‘Central to the overall downturn was a sustained drop in incoming new orders at goods producers. New business declined for the sixth consecutive month, the longest sequence of contraction in over 13 years.
‘Moreover, the rate of decline in the latest period was the fastest since August 2009, when excluding the pandemic period. Weak demand reflected pessimism regarding a potential recession, high inflation deterring customers and previous overstocking at clients.’
The manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to a panel of about 250 Irish manufacturers. The responses were collected between November 11 and 23.
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