Manufacturing growth reaches 8 month high for the month of March
According to the latest Purchasing Managers’ Index, growth in Manufacturing rose to an eight month high in March. Expansion has slowed compared to the strong growth that was seen in 2014 and the beginning of 2015.
The PMI for Manufacturing shows an rise in the rate of growth for March. The rate of growth in new orders quickened in March, while new export orders index picked up slightly from February’s two-year low, with the UK and Asia credited with this improvement.
Job creation also rose for the third month in a row to the fastest since July 2015. This increased operating capacity contributed to a third successive monthly fall in backlogs of work. On a related note, stocks of finished goods increased for a fourth month in a row.
Input costs weakened for a seventh successive month in March, with panelists reporting lower prices for raw materials including food, paper and plastics.
“The implied pace of expansion remains slower than the strong growth that was seen for much of 2014 and the first half of 2015. Our mantra for some time has been that Ireland will not be immune to any slowdown in international trade,” said Philip O’Sullivan, Chief Economist at Investec Ireland.
“However, with the sequence of growth in the quantity of purchases index now extending to 26 months and firms continuing to recruit staff, it is clear Irish manufacturers are confident that they can safely navigate through choppier waters.”