Irish Manufacturing Sector in Contraction for Third Consecutive Month
Arslan Butt • 1 min read
Manufacturing activity in Ireland fell lower in August to 48.6 from 48.7 in July, keeping the sector in contraction for the third consecutive month. This is the fastest deterioration the Irish manufacturing sector has witnessed since April 2013.
Declines in manufacturing output, new orders and export sales have contributed to the weakening of the manufacturing sector in Eurozone’s fastest growing economy. Ongoing uncertainties surrounding Brexit have reduced consumer demand considerably, the key driver behind the slide in export sales.
On the positive side, however, employment continued to grow but the rate of job creation increased only marginally in August. It is possible that staffing had climbed higher as companies prepared for Brexit.
Irish manufacturers’ holdings of raw materials and semi-finished items also slid lower, for the first time in nearly a year, and at the fastest pace in 29 months. Purchasing activity also declined for the fourth consecutive month, falling at the steepest pace since September 2011.