Manufacturing activity was boosted in February while employment in the sector also performed well, according to the latest NCB Purchasing Manager's Index (PMI).
The news of rising activity and employment comes despite several high profile redundancies in manufacturing firms in the first two months of the year. But in a negative development, the survey suggests that February saw the sharpest rise in output prices since the survey began.
From a January reading of 52.3, the average PMI - which sums up the results of component indices - reached 53.3 in February (a reading over 50 means that activity in the sector is expanding). Growth in production has now been recorded in each month since September 2003 and the latest increase was the sharpest in five months.
Export orders and new orders rose more significantly, to 54.4 from 52.5 in January and to 51 from 48.7 in January, respectively. The employment index suggests that the number of new jobs in the sector reached a five- month high in February.
The data suggest that, after a protracted decline since 2001, the manufacturing workforce ex- panded once again in the 11 months to February. FCI, Thompson Scientific and Pfizer all announced redundancies, prompting concern about the future of manufacturing employment. The output prices index rose to 57.7, up from 56.4, and this means that output prices have risen in each month since October 2003. The increase reflects the pressures on firms to pass on rising input costs: While the input prices index dipped marginally in February, they rose steadily in the months leading up to February.
Eunan King, senior economist with NCB stockbrokers, which compiles the survey, described the latest improvement as broadly based. "Orders accelerated as expert orders rose above the 50 level again. Employment grew somewhat faster than in January," he said.
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