Manufacturing surges in November
It shows activity in the Irish manufacturing sector grew at the fastest pace since July, 2002 in November.
Figures confirm earlier reports that, after a slow year in 2002, when the economy was stagnant in GNP terms, the outlook for the Irish economy is changing significantly for the better.
Details of the recovery story are in NCB’s Purchasing Managers’ Index that recorded 52.8 in November against 52.5 in October.
Readings above 50 signal growth, and the index has beaten the 50 mark for three months in a row, the latest survey shows.
Recovery is being boosted by stronger orders from key European markets that had been struggling for some time. For the third successive month in November new orders rose. The figures are underpinned also by the solid rebound in export orders after a slight decline in October.
Employment in manufacturing rose for the second month running, but only marginally.
Senior economist with NCB Stockbrokers, Eunan King, said the Index has been above 50 for three consecutive months and it augured well for the general economic outlook.
NCB has been positive on the economy for the last few years and has argued that the build up of momentum due to population has been underestimated as a big force in our economic performance even when the global economy was in serious difficulties.
On the negative side, cost inflation was the highest since February at 56.3, due partly to higher fuel and energy costs. While prices charged by firms crept up marginally for the second month running, competition in the market place prevented a more damaging inflation figure from unfolding.
The inflation increase was the fastest to hit the sector since February and was facilitated by the demand for manufacturing inputs that facilitated suppliers pushing up their prices according to the PMI Index.
However the survey shows that Irish manufacturing still has a way to go before it is back to high level output.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
