Factory output continues to rise
Investec PMI results indicate recovery in Irish manufacturing sector ‘gathered momentum in October’
Employment and purchasing activity increased at steeper rates during October, while the rate of growth in new business also quickened. Photograph: Getty Images
Manufacturing activity hit its highest level in two-and-a -half years last month, according to Investec’s Manufacturing Purchasing Managers’ Index (PMI)
The latest index figures, which were reported yesterday, indicate the recovery in the Irish manufacturing sector “gathered momentum in October”.
The PMI – an indicator designed to measure the manufacturing industry’s health – posted 54.9, up from 52.7 last month.
A PMI value above 50 indicates that the manufacturing economy is growing while a value below 50 indicates the opposite.
Employment and purchasing activity increased at steeper rates during the month while the rate of growth in new business also quickened.
Firms were encouraged to raise output at the fastest pace recorded in the last two-and-a-half years.
Investec Ireland’s chief economist, Philip O’Sullivan, said the figures show a strong start to the final quarter of 2013 for the sector, which has now experienced five successive months of growth.
The number of new orders increased for the fourth consecutive month in October, and the rate of expansion was the fastest it’s been in the last 15 months.
Mr O’Sullivan said this was helped by “improving economic conditions domestically”.