Brexit uncertainy leads to huge spike in stocks of finished goods

AIB ‘s latest PMI shows April saw a softer improvement of manufacturing conditions

The reading of 52.5 is still consistent with solid growth in the sector

The reading of 52.5 is still consistent with solid growth in the sector

 

Stocks of finished goods among Irish manufacturers rose at their fastest pace in 21 years due to continued Brexit uncertainty, according to an industry survey.

However, new orders were at their slowest pace since September 2016.

AIB ‘s latest Purchasing Managers’ Index (PMI) shows April saw a softer improvement of manufacturing business conditions as output eased to a 13-month low.

The indicator posted 52.5 in April, down from 53.9 in March, and signalled the weakest improvement in manufacturing operating conditions since October 2016.

The reading of 52.5 is still consistent with solid growth in the sector and despite the decline, the Irish manufacturing PMI continues to outperform its euro zone counterpart, with stood at 47.8 in its first reading in April.

Job creation also saw some deceleration in April, although its level continued to indicate a solid pace of hiring.

Optimism amongst Irish manufacturing firms regarding the outlook over the next 12 months remained strong in April.