IRELAND’S MANUFACTURING output continued to rise in June, but the rate of growth was the slowest in four months, a new survey showed today.
The NCB Purchasing Managers’ Index revealed slower rises in output and new business, sharp rises in input costs, and a “modest” fall in employment.
This was despite an improvement in operating conditions in manufacturing during the month.
The seasonally adjusted index reading fell from 54.1 in May to 51.8 in June, signalling a weaker strengthening of business conditions than previous months.
“The PMI continued to signal firms are expanding output albeit at a slower pace than in May,” said NCB economist Brian Devine.
“The employment index, which had signalled expansion in May, once again fell back, to signal contraction . . . The increase in the employment index last month had been a surprise and we do not expect net job creation until 2011.”
Live Register figures showed 5,800 more people signing on in June, bringing the unemployment rate to 13.4 per cent. Growth was driven by new business, but stronger expansion in new export orders indicated much of the rise was down to external demand. New overseas orders have risen every month since last November.
Delivery delays led to a marginal decline in outstanding business as firms were prevented from working through orders.
Higher costs for raw materials pushed input costs higher, with inflation rising sharply in June, but these costs could not be passed on to clients, due in part to competition. The ongoing weakness in the euro contributed to inflationary pressures, the survey said.
