The manufacturing sector in Ireland saw activity grow at the fastest pace in nearly two years during July, rebounding from record lows touched due to the pandemic-driven lockdowns in the previous months. The AIB IHS Markit manufacturing PMI surged to 57.3 during July from 51 in the previous month, and maintaining its rate of growth after falling to 36 during April.
The improvement in the PMI reading for the manufacturing sector was driven by both output as well as new orders growing at the fastest rate ever recorded by the survey, indicating possible recovery in activity following the coronavirus pandemic. However, the outlook among manufacturers for the next one year has fallen slightly, from 63.3 in June to 60.3 for the month of July – a sign that they have turned less optimistic.
Notwithstanding the dip in future outlook, the improvement in the PMI reading suggests a strong rebound in the sector despite Ireland bring slower than other countries in Europe to lift lockdown restrictions and resume normal levels of operation. According to Oliver Mangan, Chief Economist at AIB, “The strong reading for July points to a sharp pick-up in activity, but from a low base in previous months during the lockdown period.”