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Ireland’s manufacturing sector saw its sharpest deterioration in three years in May, as factories cut back production in response to weak order books, according to survey results released by S&P Global on Thursday.
The AIB manufacturing purchasing managers’ index fell to 47.5 points in May from 48.6 in April. Remaining below the neutral 50-point mark, it was the third month in a row of contraction for Irish factories.
‘Weighed down by sharper falls in output and new orders, Ireland’s manufacturing sector remained rooted in a downturn in May,’ S&P Global said. ‘Purchasing activity fell at the strongest pace since June 2020, inventory levels were scaled back, and business sentiment remained historically subdued.’
Added AIB Chief Economist Oliver Mangan: ‘May saw further declines in new orders, with a particularly sharp fall in export orders, the steepest since April 2009 apart from during the early period of the Covid pandemic. Spare capacity rose further as backlogs of work maintained their steep decline.’
More positively, inflation pressure eased. Input costs declined further, prompting manufacturers to cut selling prices for the first time since September 2020, according to survey responses.
The PMI is compiled by S&P Global from the responses to a survey sent to purchasing managers at about 250 manufacturers in Ireland
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