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Manufacturing activity in Ireland decreased in the last month of 2023, as producers and customers both reduced stocks in a climate of uncertainty about the near-term economic outlook, according to survey results released on Tuesday.
The AIB manufacturing purchasing managers’ index fell to a seasonally adjusted 48.9 points in December from 50.0 in November. The reading was below the 50-point no-change mark for the third time in the past four months.
Irish manufacturers reduced their stocks of input purchases at the fastest pace since October 2020, survey respondents told compiler S&P Global. New orders from customers decreased as well, amid destocking and tight budgets.
‘A marginal fall in output, renewed decline in new orders, stable employment and marked destocking were the key features of the December PMI survey,’ commented Oliver Mangan, chief economist at lender AIB.
‘While new orders fell, partly due to a focus on destocking, export orders rose for the first time in four months, with manufacturers reporting an upturn in demand from the UK.’
Also positively, Mangan noted, Irish manufacturers were optimistic for the year ahead, with the business expectations index edging up to its highest level since September.
The PMI is compile by S&P Global from responses to questionnaires sent to about 250 manufacturers in Ireland. Responses are collected in the second half of each month.
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