Prospects of job creation “not too optimistic” in manufacturing index
The latest Investec Manufacturing purchasing manager index (PMI) for Ireland has shown a lull in new jobs in the sector, indicating that they “would not be too optimistic about the prospect for a near term return to job creation.”
The headline PMI figure for September was slightly lower than the previous month, falling from 51.7 to 51.3.
There was more positive news on the business front, however, with a continued rise in new orders and a return to increases in new export orders. Investec also point to anecdotal evidence that points to signs of improving global demand.
On the issue of jobs, the report highlights: “Some respondents lowered staffing levels in response to recent weaknesses in new orders, while others reported the non-replacement of departing staff.”
Firms increased their purchasing activity for the first time in three months, while selling prices increased at its fastest pace since September 2012.
Philip O’Sullivan, Chief Economist at Investec Ireland, said: “All in all, the above does little to change our [existing] narrative, namely that working capital management (joined in September by a more cautious approach to hiring) points to well-founded caution on the part of Irish manufacturers as we head into the year end.”