Irish manufacturing in modest April growth

Business conditions in Ireland's manufacturing sector improved for the 20th month in a row in April, although the rate of expansion…

Business conditions in Ireland's manufacturing sector improved for the 20th month in a row in April, although the rate of expansion remained modest, a survey showed today.

The seasonally adjusted Purchasing Managers' Index compiled by NTC Research stood at 51.3 last month compared with 50.7 in March. Any figure above 50 represents an improvement.

Companies responding to the survey said further expansion was necessary to accommodate rising volumes of new business after the manufacturing production component of the index rose to 52.4 from 51.6 in March.

"Irish manufacturers again benefited from rising levels of incoming new business in April," NTC said of its survey.

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"It was reported that the successful introduction of new products and more focused sales efforts had helped generate further growth."

Survey data showed that at 51.5, levels of new orders increased in April but at a slower rate than the 51.8 recorded the previous month and thanks only to a net improvement in orders from domestic clients.

New export orders from foreign markets declined for the second successive month, slipping to 48.4 from 48.8 in March. At 51.0, employment in the sector continued to grow modestly as NTC said anecdotal evidence indicated that extra staff were recruited to cope with new business.

Higher oil and fuel prices ensured manufacturers reported another increase in costs but with the input prices component of the index at 59.3 the pace of inflation looked to have eased to its most moderate in 13 months.