Manufacturing sector in top form

THE Irish manufacturing sector was in top form in November, according to the latest survey of purchasing managers by NCB Stockbrokers.

The NCB Purchasing Managers’ Index (PMI) reached a 15-month high during the month as operating conditions improved sharply. The index jumped from 53.4 to 53.7, comfortably ahead of the 50.0 watermark that registers the difference between positive and negative territory.

NCB senior economist Eunan King said: “Manufacturing activity continued to grow in November with the index rising to 53.7. Rising output, driven by new products, appeared to be the main impetus. It was also noted that demand from the US and Spain was strong, though overall growth of new export orders decelerated.”

New business roared ahead during the month as market demand improved, a factor that allowed manufacturers to step up production levels and increase the rate of output growth.

The increase in activity allowed firms to cut the level of work backlogs, while many respondents said they were able to extract greater efficiency from their operations to satisfy new and existing orders.

Average costs continued to rise, however, as high oil prices continued to bite by hiking the cost of fuels and plastics. Firms said strong competition meant they were unable to pass on the full effect of the increase in input prices to customers.

Employment levels continued to increase as firms took on staff to cope with higher levels of activity.