FX.co ★ Ireland Manufacturing Sector Moves Closer To Stabilization

Ireland's manufacturing sector showed signs of nearing stabilization in May, marked by milder declines in output and new orders, according to a survey released by S&P Global on Tuesday.

The headline AIB Manufacturing Purchasing Managers' Index rose to 49.8 in May from April's nine-month low of 47.6.

This reading indicated that the manufacturing sector's deterioration was minimal and slowed down in the current decline sequence.

Manufacturers highlighted sluggish economic conditions with continued weak demand from both domestic and international customers. The decrease in new orders was moderate, leading to only a slight reduction in production, which experienced its slowest decline in three months.

Purchasing activities fell more gently, and inventory depletion rates lessened. Suppliers' delivery times for inputs improved, shortening for the second time in the past three months.

The survey also revealed a moderate increase in cost burdens due to higher raw material and transportation expenses. On the contrary, inflation in output charges eased to its lowest in four months.

Manufacturers reported a fresh rise in workforce numbers, achieving the highest job creation rate since September of the previous year.

Lastly, companies expressed optimism for future output, with plans to expand business operations and introduce new products.