By Irishexaminer.com,Ronan Smyth
Copyright irishexaminer
The reading is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. Any figure greater than 50.0 indicates overall improvement of the sector.
The PMI said that the growth in the sector was “driven by a faster expansion of new business intakes during September”.
However, there were a “number of reports citing subdued customer demand, ongoing global trade uncertainty and intense competitive pressures”.
Production volumes were broadly unchanged in September, which contrasted with a solid rate of expansion for much of 2025 to date.
“Survey respondents commented on growth headwinds from weak sales pipelines and depleted backlogs of work. Moreover, tighter inventory strategies for finished goods appeared to have acted as a brake on production in some cases. This was signalled by the steepest reduction in post-production inventory volumes for 15 years in September,” the PMI said.
Subdued demand
Chief economist at AIB David McNamara said “output stagnated in September, with respondents citing more subdued demand conditions”.
“This was also reflected in the continued fall in export orders, albeit total new orders growth accelerated, with new investments boosting demand overall,” he said.
The Irish manufacturing PMI reading was above the eurozone’s and the UK’s which had readings of 49.5 and 46.2 but remained below the US at 52.
Employment continued to expand during the month extending the current period of growth to 10 months.
“However, the pace of growth eased as some firms noted the lack for suitable candidates to fill current vacancies,” Mr McNamara said.
Mr McNamara said while input price inflation accelerated during the month – due to higher commodity prices — output price inflation decelerated, with “manufacturers citing pressure on pricing power due to intense competition”.
Nearly half businesses surveyed, 48%, forecasted an increase in production in the year ahead while 9% predicted a decline.
“However, optimism levels eased from August’s eight-month high,” the PMI said.
“Anecdotal evidence suggested that hopes of a turnaround in global demand conditions had fuelled business confidence in September. Intense competition was often cited as a factor likely to weigh on growth.”
