Manufacturing activity declines for first time since recession
PMI barometer sees marginal contraction in activity in June
Sentiment regarding the Republic’s output over the coming year eased to a 34-month low amid Brexit uncertainty
Manufacturing activity in the Republic has declined for the first time since 2013 as inflows of new business fell for the second straight month, according to AIB’s Purchasing Managers Index (PMI) for the sector.
The headline indicator fell to 49.8 in June, marginally below the cut-off point between contraction and expansion.
The rate of decline in new orders was also the fastest since January 2012, when the economy was mired in recession.
Amid the current Brexit uncertainty, sentiment regarding output over the coming year eased to a 34-month low.
One bright point was production which inched up as manufacturers raised their holdings of finished goods at the second-fastest pace in over two decades amid hopes of a pick-up in customer demand in the future.
“The sharp slowdown in manufacturing activity globally is now being felt in Ireland amid a marked weakening in international trade and increasing uncertainty in regard to Brexit,” said AIB chief economist Oliver Mangan.
“This is not surprising given that Ireland is a very open economy. The weak Irish reading is in line with that for manufacturing in our main export markets.”