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Ireland's manufacturing activity expanded at the quickest pace in almost three years in April, driven by robust domestic demand, survey results from S&P Global showed on Thursday.
The headline AIB Manufacturing Purchasing Managers' Index rose to 53.0 in April from 51.6 in March. A score above 50 indicates expansion.
The latest reading was the highest since June 2022, largely reflecting robust and accelerated rates of output and new business growth in April, the survey said.
Both output and new orders grew at the sharpest pace in three years. Domestic demand was the main factor boosting manufacturing workloads as export sales dipped slightly compared to March.
The US tariffs and rising global economic uncertainty remained a headwind for the manufacturers, and this was offset by improved demand from European clients.
Suppliers' delivery times shortened for the first time since August 2024, though the improvement in vendor performance was marginal overall. Manufacturing employment increased for the fifth successive month in April, albeit at a modest rate.
On the price front, input price inflation accelerated to the highest since February 2023 due to higher costs for energy-intensive raw materials and precious metals, alongside efforts by suppliers to pass on higher labor costs. On the other hand, selling price inflation remained closer to the 8-month low seen in March.
Looking ahead, they remained optimistic about their growth prospects for the year ahead, though the overall degree of positive sentiment fell to the lowest since August last year amid concerns about global economic prospects and the impact of US tariffs.
