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Ireland’s manufacturing sector saw its sharpest deterioration in over three years in June, as factories continued to cut back production in response to weak orders, according to survey results released by S&P Global on Monday.
The AIB manufacturing purchasing managers’ index fell to 47.3 points in June from 47.5 in May. Remaining below the neutral 50-point mark, it was the fourth month in a row of contraction in activity for Irish factories.
AIB Chief Economist Oliver Mangan said: ‘Irish manufacturing continued to be hampered by subdued demand, including in overseas markets. This was reflected in new orders falling for a fourth month in-a-row, with export orders contracting for a thirteenth successive month. The weakness in demand, meant that production continued to be scaled back, and is now at its lowest level since early 2021.’
Mangan added that employment fell for the first time in seven months, with the rate of decline the sharpest in almost three years.
On a positive note, he said: ‘Despite the more challenging market conditions, Irish manufacturers continue to be optimistic about the future, with confidence rising to a three month high.’
The PMI was compiled by S&P Global from the responses to a survey sent to purchasing managers to about 250 manufacturers in Ireland between June 12 and 23.
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