The latest NCB Manufacturing PMI signaled that Irish manufacturing activity grew for the sixth consecutive month during August. The seasonally-adjusted headline index registered 50.9, indicating that business conditions improved during the month, albeit at a slower pace than in July (53.9).
Accodring to the report, it bucked the euro zone trend where manufacturing contracted for the 13th consecutive month in August, as exports in Germany, fell at the steepest rate in three years.
Respondents pinpointed new business orders (51.8) as a key driver of higher production levels (51.0) during the month. The sustained strength in new export orders (53.4) is reassuring, while employment (51.1) expanded for the sixth month in a row.
After two consecutive months of negative growth, input prices (56.8) reverted to trend. On the cost side, higher fuel prices, raw material costs and the weaker euro proved headwinds for manufacturers and are likely to continue to do so.