Irish manufacturing output in April was at its highest since June 2022, according to AIB, which noted a “robust upturn” in activity.
Production volumes and incoming new work both increased at the fastest pace for three years.
The bank’s manufacturing purchasing managers’ index (PMI) rose to 53.0, up from 51.6 in March.
Any figure greater than 50 indicates overall expansion in the sector. April’s figure was above that threshold for the fourth consecutive month, signalling a solid improvement in overall business conditions.
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The Irish manufacturing PMI figure is well above the initial April readings for the euro zone, the US and the UK which, bar the US, reported contraction in the sector with readings of 48.7, 50.7 and 44.0, respectively.
“The latest reading was the highest since June 2022, largely reflecting robust and accelerated rates of output and new business growth,” it said.
“April data highlighted a robust upturn in Irish manufacturing production, supported by a further acceleration in new order growth to its strongest for three years.”
With export sales having dipped in March, the latest PMI indicates that domestic demand was the main factor behind rising manufacturing workloads.
Unsurprisingly, those responding to the survey flagged headwinds from US tariffs and rising global economic uncertainty, although this was offset by improved demand from European clients.
A number of firms suggested economic uncertainty linked to US tariffs had led to delayed decision-making among clients, particularly in relation to big capital spending projects.
There was also anecdotal evidence that softer US demand was offset by rising spending among clients in Asia and Europe.
AIB chief economist David McNamara said April’s rise in activity was broad-based, with growth in output and new orders, as well as signs of stock building amid tariff uncertainty.
“Employment expanded, albeit at a modest pace, as firms remained cautious in hiring activity,” he said.
“The purchases index rose to its highest level since May 2022, signalling a sharp upturn in input buying by firms. Some commented on efforts to pre-purchase critical inputs in response to heightened global trade uncertainty.”
Some higher input prices were linked to raw material costs and rising energy prices.
AIB’s headline PMI is a composite indicator of manufacturing performance derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
