Rise in output last month

IRISH MANUFACTURING output rose last month as employment in the sector increased for the first time in more than two years and new orders continued to grow.

The NCB manufacturing purchasing managers’ index (PMI) rose from 53.4 to 54.1. A figure above the 50 mark indicates expansion rather than contraction.

There was surprise growth in employment in the sector, breaching the 50 mark for the first time since November 2007. This indicates that more firms added jobs than cut them.

Some 17.1 per cent of firms increased employment, with only 11.3 per cent reducing employment and 71.6 per cent holding steady.

“Manufacturing sector employment is far smaller than services employment, but nonetheless this is a really positive development as the multiplier effects from increased manufacturing employment will aid the recovery in the more domestically-orientated services sector,” NCB said.

“In short, the cyclical recovery in Ireland continues to gain momentum.”

The output index continued to rise strongly. Fragile domestic demand hit new orders, which eased for the second month running, but the index remained at 54.9. Export orders surged to 59.2.

The Irish data went against the trend, with global manufacturing expanding at a slower pace last month than in April.

The global manufacturing PMI, produced by JPMorgan with research and supply management organisations, fell to 57.2 in May from 57.8 in April, marking the 11th month above the 50 mark.

Earlier data showed China’s PMI fell last month, as did those in the euro zone, the US and some other Asian nations.

However, the UK managed to buck the trend with its index holding at April’s 15-year high. – (Additional reporting: Reuters)