Irish Manufacturing Sees Fastest Growth and Sharp Cost Rise Since 2022
April 2024 Irish Manufacturing PMI and Economic Impacts
Strongest Manufacturing Growth in Four Years
DUBLIN, May 1 (Reuters) - Irish manufacturing activity grew at the fastest pace in four years in April, but firms also faced their sharpest rise in input costs since September 2022 on the back of the war in the Middle East, a survey published by S&P Global showed on Friday.
PMI Reaches Highest Level Since May 2022
The AIB Ireland Manufacturing Purchasing Managers' Index (PMI) improved to 54.9 from 53.7 in March, its highest level since May 2022. Any reading above 50 indicates growth in activity.
Factors Behind the Expansion
"The expansion in April was due to sustained gains in output and new export orders, in part reflecting a temporary boost to demand and stock building due to the Middle East conflict," said AIB's Chief Economist, David McNamara.
Rising Input Costs and Inflation Pressures
Key Drivers of Cost Increases
But the rate of input inflation also accelerated sharply, with raw materials, shipping costs and fuel surcharges the key drivers, McNamara said.
Business Outlook and Future Expectations
Decline in Production Optimism
Expectations regarding business activity in the year ahead also took a hit, with around 38% of the survey panel forecasting an increase in production, down from 44% in the prior month, the survey found.
(Reporting by Conor Humphries; Editing by Hugh Lawson)
