DUBLIN, Jan 2 (Reuters) – The expansion in Ireland’s manufacturing sector eased marginally in December, driven by a slowdown in growth in new orders and new export orders, according to the AIB Ireland Manufacturing PMI survey released on Friday.
The seasonally adjusted PMI slipped to 52.2 in December from 52.8 in November, remaining above the 50.0 threshold that indicates growth for the 12th consecutive month, AIB reported. This figure is slightly above the long-run average of 52.0.
While output expanded for a second month, the pace of growth slowed from November’s four-month high.
“Output saw robust growth in December, with respondents citing stronger order books … albeit export orders fell marginally,” said David McNamara, AIB Chief Economist.
New business growth eased, with the New Orders index showing a marginal rise, hindered by subdued demand and intense competition. Export orders declined fractionally, the fourth contraction in five months, although demand from UK clients showed some improvement.
Employment was a bright spot, with hiring accelerating as firms prepared for new projects and long-term expansion. This marked the 13th consecutive month of job growth, contributing to a decline in backlogs of work.
Input costs rose at the fastest rate since July, driven by higher raw material prices, but output price inflation was the weakest since May 2024, reflecting squeezed margins due to competitive pressures.
Despite the slowdown, manufacturers remained optimistic about 2026, with 42% of firms expecting a rise in activity, although optimism was slightly down from November’s 11-month high.
(Writing by Reuters; Editing by Hugh Lawson)