FX.co ★ Irish Manufacturing Activity Contracts Most In 9 Months

Ireland's manufacturing sector experienced a further decline in April, due to ongoing decreases in production volumes and new orders, according to survey results released by S&P Global on Wednesday.

The primary AIB Manufacturing Purchasing Managers' Index, a key indicator of manufacturing health, fell to 47.6 in April, down from 49.6 in March. A score below 50 suggests a contraction in the sector.

The downfall of output in April was the most significant in half a year, primarily due to sluggish demand conditions leading to a decrease in new incoming work.

New orders experienced a sharp decline in April, particularly in export markets, where foreign order rates dropped at the fastest rate seen in almost a year. This slump in export demand was linked to adverse business conditions in the UK and other parts of Europe.

The lacklustre demand conditions led to a standstill in manufacturing employment in April, following marginal growth over the past three months.

Additionally, supplier performances faced a renewed downturn, with shipping delays in the Red Sea frequently cited by manufacturers as a cause for extended waits for deliveries, particularly for raw materials sourced from Asia.

In terms of pricing, input price inflation saw a slight dip, reaching a 3-month low in April. Meanwhile, goods producers raised their factory prices for the third consecutive month.

"Looking to the future, firms continue to maintain a somewhat positive outlook for the next 12 months. The Business Expectations Index saw a significant increase from the 41-month low recorded in March," said David McNamara, AIB Chief Economist.