Irish manufacturing continues to weaken

Ireland's Purchasing Managers' Index (PMI) fell for the third consecutive month in October, dropping to its lowest level since…

Ireland's Purchasing Managers' Index (PMI) fell for the third consecutive month in October, dropping to its lowest level since data were first collected in May 1998, figures showed today.

The PMI, a key indicator of overall manufacturing conditions, slipped to 46.1 in October from 47.7 in September.

The survey, conducted by NCB Stockbrokers, is seasonally adjusted, with readings above 50 signalling growth and below 50 indicating contraction.

The October report showed sharp falls in both output and new orders in the wake of the September 11th hijack attacks on the United States.

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"Post-September 11th demand has been severely curtailed, particularly in Ireland's export markets. There is little good news in this report other than input prices," NCB senior economist Mr Eunan King said.

Suppliers responded to weaker demand for materials in October by reducing charges, leading to a fall in overall input costs for the third consecutive month.

The PMI is based on a survey of 285 manufacturing companies in Ireland and is conducted in association with the Irish Institute of Purchasing and Materials Management.