The country's manufacturing sector grew at its fastest pace in four years in May as the Middle East conflict triggered stock-building and front-loading of orders, according to a new survey published today.
The AIB Ireland Manufacturing Purchasing Managers' Index (PMI) rose to 55.9 in May from 54.9 in April, marking the highest level since May 2022.
Any reading above 50 indicates growth in activity.
The expansion was due to "sustained gains in output and new export orders, reflecting a front-loading of demand and stock building due to the Middle East conflict," with improving demand from Britain, the US and Asia, AIB's chief economist David McNamara said.
Purchasing activity by firms rose at the fastest pace since February 2022, in part driven by front-running of purchases ahead of expected price hikes by suppliers, he added.
Manufacturers' assessment of the outlook for activity levels over the coming year improved, with around 47% predicting an increase in output, while only 10% forecast a reduction, the survey said.
