Irish Factory Growth Strongest in Four Years

The AIB Ireland Manufacturing PMI rose to 55.9 in May 2026 from 54.9 in April, reaching its highest in four years. Output growth accelerated to its fastest pace in a year, while new orders increased at the quickest rate since April 2022, driven by improving domestic and export demand, with overseas sales posting their strongest growth since August 2021. Employment also expanded at the fastest pace in nearly four years as firms boosted capacity to meet growing workloads. Purchasing activity strengthened sharply, while manufacturers continued building inventories amid supply chain concerns linked to the Middle East conflict. Supplier delivery times also lengthened to the greatest extent since October 2022. Meanwhile, input cost inflation accelerated to its highest level since July 2022, leading firms to raise selling prices at the fastest pace since December 2022. Still, business confidence improved from April’s 25-month low, supported by stronger sales pipelines and investment plans.

The AIB Ireland Manufacturing PMI rose to 54.9 in April 2026 from 53.7 in the previous motnh. It marked the highest reading since May 2022, inidicating a clear signal of solid expansion. Output growth remained robust, supported by improved order books and resilient demand. Subsequently, new orders grew at the fastest pace in a year, mainly due to a surge in export sales. Employment also expanded strongly, with hiring rising at one of the quickest rates since June 2022 as firms invested in capacity and long-term growth. Meanwhile, suppliers’ delivery times lengthened to the greatest extent in three and a half years, with firms citing fuel protests and ongoing international shipping delays. On the price front, input prices accelerated to its highest level since September 2022, reflecting higher fuel surcharges, transport costs, and raw material prices. Finally, sentiment weakened notably, falling to over two-year low amid concerns about the longer-term impact of the Middle East conflict.

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.