Irish Manufacturing Growth Strongest in 9 Months

The AIB Ireland Manufacturing PMI increased to 53.7 in March 2026 from February’s 53.1, marking the highest reading since June 2025. The improvement was supported by stronger order books, amid the fastest rise in export sales in just over four years. Output growth accelerated despite challenges from intensifying cost inflation and rising global economic uncertainty. The job creation eased only slightly from February's 44-month high. Supply chain challenges persisted, with delivery times lengthening for the eleventh successive month due to international shipping delays. As a result, input cost inflation accelerated to the highest level since December 2022, driven by higher energy, fuel, metals, and polymers prices. Meanwhile, output prices rose the most since September 2024, as firms needed to pass on higher fuel and raw material costs. Lastly, business sentiment weakened to its lowest level since July 2025, due to the impact of the war in the Middle East on demand.

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.