Irish manufacturers experienced a dampening in demand for their exports for the second consecutive month in September.
They cited “subdued customer demand” and “ongoing global trade uncertainty” amid US president Donald Trump’s import tariff agenda.
Conditions overall in the manufacturing sector improved for the ninth month running, but there was a contraction for the fifth month out of six in new orders for export, the latest PMI report on the sector from AIB said.
Manufacturers generally noted “weak global demand”, although some commented on greater sales to clients across Asia.
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Output levels, which measure the value or quantity of goods produced, stagnated across the sector.
As a whole, these fell to their lowest level this year. Firms mostly commented on headwinds to growth from subdued demand conditions in domestic and export markets.
Business optimism across the manufacturing sector held close to the eight-month high seen in August. Around half of firms predicted a rise in output during the year ahead. Only 9 per cent expected a reduction.
A number of goods producers commented on hopes of improving demand across global markets and a subsequent uplift in export sales over the next 12 months.
The headline figure for performance, which is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases, was 51.8 in September, up slightly from 51.6 in August. The 50 mark separates contraction from growth.
The upturn in overall manufacturing performance was driven by faster expansion of new business during the month. Employment levels increased at a moderate pace, following near-stagnation in August.
Goods producers noted a boost to their order books off the back of greater business investment from major clients as well as new product launches.
However, a number of firms cited “subdued customer demand, ongoing global trade uncertainty, and intense competitive pressures” as obstacles.
Prices charged by Irish manufacturers increased at a slower pace in September, which some firms linked to “intense competitive pressures”.
Production volumes were broadly unchanged, which contrasted with a solid rate of expansion for much of 2025 to date.
Companies said they faced growth headwinds from weak sales pipelines and depleted backlogs of work. Moreover, tighter inventory strategies for finished goods appear to have acted as a brake on production in some cases, they said.
This was signalled by the steepest reduction in post-production inventory volumes for 15 years in September.
Workforce numbers expanded for the 10th month running and at a solid pace, albeit the least marked since May. Additional staff hiring was attributed to long-term business expansion plans and forthcoming projects.
Some manufacturers suggested a lack of suitably skilled candidates to fill vacancies had affected recruitment.
