Irish manufacturing slowing for fourth month

Irish manufacturing activity contracted for a fourth consecutive month in November, according to the latest purchasing managers' index (PMI) published today by NCB Stockbrokers.

Although the headline index of 46.6 remains well below the static 50 mark it is marginally up on October’s figure of 46.1.

A reading above 50 indicates that manufacturing is expanding while a reading below shows the sector is contracting.

NCB chief economist Mr Eunan King said: "This report offers the first signs in four months that the deteriorating situation in manufacturing may be easing. The indicators for orders, in particular export orders, provide the clues that the climate has stopped accelerating downwards".

Lack of new orders remained the key problem facing manufacturers in November. The global slowdown and, to a lesser extent, September 11th, were identified by respondents as the adverse circumstances facing the sector.

With many manufacturers adjusting down their production levels and deliberately running down stock levels demand for raw materials shrank again in November.

Reduced capacity translated into employment cuts with November revealing the most aggressive job cuts since the survey began in Many 1998.

The PMI is derived from a monthly survey of 285 manufacturing companies in the State and is conducted with the Irish Institute of Purchasing and Materials Management.