Irish Manufacturing Growth Remains Solid

2026-01-02 01:13 By Joshua Ferrer 1 min. read

The AIB Ireland Manufacturing PMI fell to 52.2 in December 2025 from 52.8 in November, but stayed above the 50 threshold for the twelfth straight month, signaling a continued expansion in manufacturing conditions.

Output growth was sustained for a second month, though the pace of expansion eased from November’s four-month high.

New business rose only marginally as weaker export demand and intense competition weighed on overall order growth.

Employment stood out as a key positive, with manufacturers increasing staffing for the thirteenth month running and at a faster pace, helping to reduce backlogs further.

Purchasing activity also remained expansionary but slowed to its weakest in four months.

On prices, input cost inflation accelerated to its fastest pace since July, while output price inflation eased to its weakest since May 2024.

Looking ahead, manufacturers remained optimistic about output growth in 2026, although business sentiment softened slightly from November’s 11-month high.



News Stream
Irish Factory Activity Remains Stable in January
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Irish Manufacturing Growth Remains Solid
The AIB Ireland Manufacturing PMI fell to 52.2 in December 2025 from 52.8 in November, but stayed above the 50 threshold for the twelfth straight month, signaling a continued expansion in manufacturing conditions. Output growth was sustained for a second month, though the pace of expansion eased from November’s four-month high. New business rose only marginally as weaker export demand and intense competition weighed on overall order growth. Employment stood out as a key positive, with manufacturers increasing staffing for the thirteenth month running and at a faster pace, helping to reduce backlogs further. Purchasing activity also remained expansionary but slowed to its weakest in four months. On prices, input cost inflation accelerated to its fastest pace since July, while output price inflation eased to its weakest since May 2024. Looking ahead, manufacturers remained optimistic about output growth in 2026, although business sentiment softened slightly from November’s 11-month high.
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The AIB Ireland Manufacturing PMI increased to 52.8 in November 2025 from 50.9 in October, marking the fastest expansion since July. The rise was supported by a strong increase in new orders, driven by a fresh rise in export sales, while production posted renewed growth, the first increase in four months. Purchasing activity also rose, following sharp declines in prior months, while suppliers’ delivery times lengthened for the seventh consecutive month. Meanwhile, employment continued to decline, and backlogs of work increased for the first time in four months. On prices, input cost inflation accelerated, and output prices rose as firms passed higher costs on to their clients, though inflation eased slightly. Looking ahead, business sentiment improved to an 11-month high, supported by hopes of stronger demand conditions.
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