Ireland: Manufacturing PMI records worst reading since October 2020 in August
September 1, 2022
The AIB Manufacturing Purchasing Managers' Index (PMI) fell to 51.1 in August from July's 51.8. August's result marked the worst performance since October 2020. As a result, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in private sector business conditions from the previous month.
The moderation was driven by sharper declines in new orders and output. Elevated inflation and economic uncertainty affected domestic and foreign demand. At the same time, producers reduced their hiring activity, with employment growth reaching its lowest rate since January 2021. More positively, weaker demand appeared to ease constraints on capacity, with backlogs and input inflation both falling. Meanwhile, looking further ahead, firms’ expectations for output 12 months ahead dropped to a 22-month low on concerns regarding inflation and rising recession risks.