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'Worrying' fall in manufacturing output

Manufacturing survey - New orders and employment levels dip
Manufacturing survey - New orders and employment levels dip

A survey has shown that activity in the manufacturing sector fell in June for the first time since September last year.

The NCB Purchasing Managers' Index dropped to 49.8 from 51.8 in May. Any figure below 50 means that activity fell.

New orders fell, also for the first time since September, with firms reporting declining demand, particularly in the domestic sector. New export orders continued to rise, however, though only slightly.

Employment levels fell for the second month in a row as a result of the drop in orders, with this index recording 48.3.

The input costs index remained high at 63.5, with companies highlighting increased oil-related prices, while the prices charged index also rose as firms passed on the rises to customers.

NCB economist Brian Devine said manufacturing output had been the positive dynamic in the Irish economy over the last number of years, and it was worrying to see the PMI index again signalling contraction.