Manufacturing activity growth at 15 year high - Investec PMI

Monday 01 September 2014 23.19
Investec's Manufacturing Purchasing Managers' Index rose to a 15-year high of 57.3 in August from 55.4 in July
Investec's Manufacturing Purchasing Managers' Index rose to a 15-year high of 57.3 in August from 55.4 in July

Activity in the Irish manufacturing sector expanded at the fastest rate since 1999 in August, figures from Investec Bank show today.

A surge in new orders offered further evidence that the economy is recovering steadily.

The Investec Manufacturing Purchasing Managers' Index rose to a 15-year high of 57.3 in August from 55.4 in July, well above the 50 line dividing expansion from contraction. 

It represented the 15th month of growth in a row.

"This is a strong outcome, particularly when framed against the backdrop of weakening signs from some euro zone trading partners of late," Philip O'Sullivan, chief economist at Investec said.

"With manufacturing firms in Ireland stepping up their purchasing and hiring activity, it is clear that they are optimistic of a strong finish to the year," he added.

Manufacturing accounts for about a quarter of Irish gross domestic product, according to World Bank figures.

In contrast to one of its smallest members, manufacturing activity for the euro zone as a whole fell to a 13-month low in August, according to flash data out recently.

The PMI sub-index measuring new orders among Irish manufacturing firms rose 60.4 in August from 57.1 in July.

Output prices, work backlogs and input prices all slipped.

The country has seen a string of positive data and analysts forecast that the economy will grow 3% this year after two years of near stagnation.

Keywords: economy, investec