The Irish manufacturing economy showed further signs of contraction in April, but the rate of decline eased, according to the latest Purchasing Managers Index today.
The PMI, compiled by NCB Stockbrokers, rose to 48.2 in April from 47.4 in March - below the critical 50 no change mark for the seventh month in a row. The PMI is intended to give an overall view of the country's manufacturing sector.
NCB said the downturn in the manufacturing economy was again driven by weaker levels of output and order books. Firms generally attributed the loss of international business to the global economic slowdown, while exports to the US were especially weak, impeded by the recent strength of the euro.
The PMI also showed that Irish manufacturing employment declined for the eighth successive month in April. Firms were again reported to have reduced capacity through the non-replacement of leavers.
'The April manufacturing PMI shows only a marginal let up from the softness of the previous few months,' said Dermot O'Brien, NCB's Chief Economist. 'The export sector continues to be pressurised and orders and output are still declining.'
'There was, however, some moderate in the pace of input cost inflation as oil prices eased and the euro firmed,' he added. 'Overall, the picture is not encouraging but we need more a post war perspective than is available in this data to make a firm judgment,' he said.
