NCB's Purchasing Managers' Index stayed below the critical no change mark of 50 in May, the latest figures show today. This indicates a deterioration in Irish manufacturing business conditions for the eighth consecutive month.
The PMI fell to 47.5 in May from 48.2 in April, which suggested that the rate of deterioration accelerated slightly during the month, following steeper declines on order books, production, employment and stocks of purchases.
'Activity is showing no sign of a post-Iraq bounce with a further decline in May,' commented Dermot O'Brien, Chief Economist at NCB Stockbrokers.
'While the strength of the currency was cited as a factor curtailing export orders, both input prices and output prices were under downward pressure. This, at least, is an encouraging development,' he added.
The PMI said that the rate of contraction of order books was the sharpest since December 2001. It said that firms widely linked weaker levels of new business to a further softening of demand conditions across domestic and export markets.
In line with the downturn in production levels, employment in the manufacturing sector declined for the ninth successive month in May.
