The AIB Ireland Manufacturing PMI eased to 55.2 in October 2026 from 55.5 in September, but continued to indicate a strong overall improvement in business conditions. Output posted another solid gain, though the rate of expansion slowed from September’s four-and-a-half-year peak. New orders rose sharply, with export orders extending their run of growth to nine consecutive months. Backlogs of work increased only modestly, registering their weakest rise since July.
Firms continued to expand staffing levels to meet stronger demand and enhance capacity, with employment growth reaching a three-month high. Purchasing activity increased at its fastest rate since May, in part reflecting efforts to build safety stocks, as pre-production inventories recorded their strongest accumulation since January 2023.
On the cost side, input price inflation quickened to a four-month high, driven by rising energy, fuel and raw material costs. Output prices also increased at their fastest pace since June. Despite the pickup in cost pressures, businesses grew more optimistic about the outlook for the year ahead.