Thomas Lyons 
Irish manufacturing activity saw an unexpected boost in January, with the AIB Purchasing Managers’ Index (PMI) reporting that conditions improved and factories reported easing inflation pressures. The index posted a reading of 50.1, which was the strongest reading in three months and up from 48.7 in December.
Any reading of 50 marks the level between contraction and expansion for manufacturing. Although global manufacturing continues to contract, Ireland’s PMI suggests that its manufacturing sector is slowly improving.
What Does the PMI Suggest?
The PMI suggests that although overall demand remains muted, there has been a decrease in new orders since June 2019, when they first began to decline. This indicates that despite a general slowdown in global manufacturing activity, Irish factories are starting to see some improvement in their order books.
Overall it’s encouraging news for Ireland’s manufacturers who have had to face difficult challenges over the past few years due to Brexit uncertainty as well as global economic challenges affecting international supply chains too.
The latest monthly survey suggests that there may be light at the end of the tunnel with Irish factories reporting an increase in activity despite global contraction showing resilience and adaptability during difficult times too. With continued support from governments, businesses can continue to improve operations while increasing market competitiveness which will only benefit all stakeholders involved.
