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Ireland's manufacturers saw a ‘challenging’ month in July, data from AIB showed on Tuesday, with output struggling to keep up as new orders slump.
The headline AIB Ireland manufacturing purchasing managers' index slid to 51.8 in July versus 53.1 in June.
‘Although still above the neutral level of 50.0, the latest figure was indicative of the slowest improvement in the health of the sector since January 2021,’ AIB explained.
Any figure above 50.0 shows expansion.
Oliver Mangan, AIB chief economist, said: ‘The AIB Irish manufacturing PMI survey for July shows a continuing loss of momentum in the sector amidst a global slowdown in activity as demand weakens in the face of rising price pressures.’
AIB noted the survey showed demand slid both domestically and abroad, in part due to rising costs.
‘The impact of weakening demand on Irish manufacturing activity was most evident in the second consecutive monthly contractions in both output and new orders,’ Mangan continued. ‘The drop in new orders resulted in a further easing in capacity pressures, as evidenced by declining backlogs for a third month running. Weakening demand also saw stocks of finished goods rise for the first time in over a year.’
Factory gate prices were up in July, with AIB noting inflation rising at its fifth-quickest pace on record.
Delivery times lengthened again in July, amid reports of material shortages and transport delays.
The survey is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 250 manufacturers. The data was collected between July 12 and 22.
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