Ireland Factory Growth Remains Robust

The AIB Ireland Manufacturing PMI edged down to 55.2 in October 2026 from 55.5 in September. Still, the reading continued to signal a robust improvement in overall business conditions. Output rose solidly, although growth slowed from September's four-and-a-half-year high. New orders also increased sharply, with export orders extending their growth streak to nine straight months. Backlogs of work rose at the slowest pace since July. Manufacturers continued hiring to meet stronger demand and boost capacity, with job creation reaching a three-month high. Purchasing activity also grew at its fastest pace since May, partly reflecting efforts to build safety stocks, as pre-production inventories recorded their strongest increase since January 2023. Meanwhile, input cost inflation accelerated to a four-month high, driven by higher energy, fuel and raw material prices. Output charges also rose at their fastest pace since June. Finally, confidence in the year-ahead outlook improved further.

The AIB Ireland Manufacturing PMI rose to 55.5 in September 2026 from 55.4 in August, marking its highest reading in four months and the second-strongest improvement since May 2022. Output growth accelerated to its fastest pace in four-and-a-half years, supported by robust new orders, while export orders posted their sharpest increase in three months. Employment rose solidly, and purchasing activity grew at its fastest in four months. Firms continued building pre-production and finished-goods inventories, while backlogs increased for a third straight month as capacity pressures and raw-material shortages persisted. Supplier delivery times lengthened due to international shipping delays. Input cost inflation accelerated to a three-month high, driven by higher energy, fuel and transport costs, while output price inflation also rose to a three-month high. Business confidence remained positive, but eased to a five-month low, with 38% of firms expecting higher output over the next year.

The AIB Ireland Manufacturing PMI rose to 55.4 in August 2026 from 55.1 in July, marking its highest reading in three months. New orders expanded at their fastest pace in nearly four and a half years, supporting a sharp increase in output, which grew for the tenth consecutive month and at its strongest pace since April 2025. Employment also rose for a ninth consecutive month, although growth eased from July’s multi-year high. Purchasing activity remained solid, while firms continued building inventories as supply-chain delays persisted. Export demand remained subdued due to the Middle East conflict, while transportation delays and capacity constraints extended supplier lead times and pushed backlogs higher. Input cost inflation accelerated, driven by higher energy and raw material prices, although output price inflation eased to a five-month low. Business confidence strengthened to its highest since January, with around half of manufacturers expecting higher output over the next year.