Irish Factory Activity Hits 7-Month High

The AIB Ireland Manufacturing PMI rose to 53.1 in February 2026, after holding steady at 52.2 in the previous month. This marked the highest reading since July 2025, as output expanded at its fastest pace in seven months, supported by improved demand across global markets. Moreover, new orders picked up from January’s five-month low, with the latest survey showing the fastest increase in new business from abroad since March 2025. Employment growth accelerated to its strongest pace since June 2022. On the price front, input prices climbed to its fastest rate since January 2023, fueled by rising copper, steel, and precious metals prices, as well as the impact of elevated energy costs, while output charges rose only moderately, slower than in January. Looking ahead, business optimism strengthened, though slightly less pronounced than last month, underpinned by expectations of improving customer demand and planned expansion in export markets.

The AIB Ireland Manufacturing PMI stood at 52.2 in January 2026, unchanged from December 2025, marking the 13th consecutive month of expansion, driven by sustained gains in output, new orders, and employment. Output grew at the slowest pace in three months due to lacklustre foreign sales amid economic uncertainty. Meanwhile, a faster upturn in employment and renewed inventory accumulation offset the impact of weaker expansion in output and new business. Purchasing activity rose at the fastest pace since June 2025, while delivery times deteriorated to the greatest extent since May 2025 amid ongoing transportation delays. On prices, input cost inflation accelerated to the highest level in three years, driven by higher raw material prices and rising wage costs. As a result, selling prices rose, albeit to a much lesser extent than input costs. Finally, sentiment improved to the highest level in nearly two-and-a-half years, amid hopes of improving global demand conditions.

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.