Survey shows Irish manufacturing growth slows

Irish manufacturing growth continued to slow in May, the monthly Purchasing Managers' Index compiled by NCB Stockbrokers showed…

Irish manufacturing growth continued to slow in May, the monthly Purchasing Managers' Index compiled by NCB Stockbrokers showed on today.

At 50.2 the index remained just above the crucial 50.0 no change mark, but was still the lowest level recorded since the survey began in May 1998.

The index was at 50.3 in April and 51.9 in March.

NCB’s chief economist Mr Dermot O'Brien said today "Though the overall index continues to signal growth in manufacturing, the forward indicationsare more ominous, with the new orders index falling below the crucial 50 level for the first time."

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NCB said a rise in overall output and employment were the main reasons the index showed the Irish manufacturing sector was continuing to expand. Falling demand was the reason for the slowing in the rate of growth, it said.

The PMI index is seasonally adjusted, with readings above 50.0 signalling growth and below 50.0 signalling contraction.