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Ireland’s manufacturing sector suffered a decline in September as new orders fell at the fastest pace this year, AIB data showed on Monday.
The headline manufacturing purchasing managers’ index posted 49.6 points in September, down from 50.8 in August. The figure once again fell below the 50.0 point no-change threshold.
The fall was largely due to new orders falling at the fastest pace of the year so far, as well as a decline in export sales due to less spending from European clients.
AIB noted that the latest PMI reading still ‘compared favourably’ with the average seen in the first half of the year.
‘A significant decline in new orders, following their brief pick-up during August, was the primary factor behind the weakening in Irish manufacturing conditions in September’, AIB Chief Economist Oliver Mangan said.
‘Firms reported that destocking by customers and subdued global economic conditions weighed on demand.’
The pace of job creation, however, was maintained from August, AIB said.
‘In addition, there was another solid increase in employment, which rose at one of the fastest rates seen in the past year, ’ Mangan said, ‘there was a strong degree of optimism about the outlook for the year ahead, with confidence levels holding close to August’s six-month high.’
S&P Global compiles the AIB Ireland manufacturing PMI from survey responses by purchasing managers from around 250 manufacturing firms.
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