Irish Factory Growth Remains Strong in June

The AIB Ireland Manufacturing PMI eased to 54.9 in June 2026 from May’s four-year high of 55.9 but remained well above the 50 threshold, signaling another strong improvement in factory conditions. Output expanded for an eighth consecutive month, while new orders continued to rise at one of the strongest rates in the past four years. Employment increased again as firms expanded capacity, helping reduce backlogs of work for the first time in four months. Stocks of purchases rose at the fastest pace since January 2023 and finished goods inventories posted their strongest increase since July 2019 amid persistent supply chain disruptions linked to the Middle East conflict. Although input cost inflation eased from May’s 46-month high, it remained elevated due to higher fuel, freight, and raw material costs, while output price inflation accelerated to its fastest pace since December 2022. Business confidence remained broadly positive despite moderating slightly from May.

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.