Manufacturing sector reports strong summer

Conditions in Ireland's manufacturing sector improved in August, according to a survey published today.

Conditions in Ireland's manufacturing sector improved in August, according to a survey published today.

The August edition of the NCB Purchasing Managers' Index published today shows a reading of 54.1, indicating an expansion in activity for the 36th consecutive month.

A reading above 50 in the survey of manufacturing firms signals expansion while a sub-50 reading signals a contraction.

"The recovery in manufacturing activity continued in August although the pace of expansion eased once again," said Dermot O'Brien, chief economist at NCB stockbrokers.

READ MORE

"Output growth held up well but there was a slower rate of growth in new orders and employment. Input and output price pressures increased a little in the month," he added.

Output growth kept pace with June's 23-month high amid signs of a broad-based improvement of productivity.

The survey also found that new products had led to new order gains, and there were also reports of a general improvement in demand.

However, the survey also reveals that the rate of new business expansion was the lowest since March. New export orders rose for the fifth month in a row, although at the slowest rate during the period.