Growth in the country's manufacturing sector slowed slightly in March, with concerns over global economic uncertainty and US trade tariffs tempering business optimism, a survey showed today.
AIB's Purchasing Managers' Index (PMI) slipped to 51.6 from 51.9 in February.
Despite the dip, the index remained above the 50 threshold that separates expansion from contraction for the third consecutive month.
March saw new orders rise at their fastest pace since April 2022, driven by a rebound in export sales. Production volumes also showed a solid upturn, marking the greatest increase in 13 months. But employment growth remained subdued.
"The rise in March was broad-based, with stronger growth in output and new orders, and a renewed upturn in exports," said David McNamara, AIB's chief economist.
"Encouragingly, the rate of inflation for input and output costs eased materially in March," he added.
Despite the positive momentum, manufacturers remained cautious, with job creation at its weakest in four months.
Inventory levels were deliberately reduced, reflecting efforts to improve working capital efficiency amid rising input costs for energy, food, fuel, and raw materials.
Looking ahead, 41% of manufacturers expect production to increase over the next 12 months, while 10% anticipate a decline.
