Drop in output for manufacturing
This is the first dip in output the manufacturing wing of the Irish economy has recorded in 52 months, and was also accompanied by modest job losses.
“Output and orders both softened and employment also dipped. Input prices grew at a somewhat slower pace and prices charged grew slowly,” said Eunan King, senior economist at NCB Stockbrokers.
The PMI measures how well the manufacturing industry is performing and last month it registered 49.5, highlighting a shift in the wrong direction for the sector.
Since August 2003 the Index has registered above 50, signalling progressive growth in output. Above 50 highlights growth within the sector with anything below that mark pointing to a slowdown.
The PMI stood at 52.3 in November.
Figures for December showed an easing in new orders in Irish firms, but the dip was modest.
Stiffer competition and a general slowing in demand explained the slowdown according to the latest findings from NCB, but new business written held up compared with the November outturn.
While output prices increased solidly in December, these were offset by a sharp increase at the other end, led by higher prices for fuel, plastics and food ingredients.
In December, Irish manufacturers’ input buying declined for the first time since August 2005. The moderate fall reflected a fall in new order volumes and lower production needs. Stocks of purchased goods contracted at a modest rate in December.
According to the index, anecdotal evidence suggested the fall was a result of the greater utilisation of stocks inproduction.
Higher prices of fuel and plastics underpinned a sharp rise in manufacturers’ costs in December.
However, the rate of input price inflation eased markedly from November’s nine-month peak.
Prices charged rose for the 51st month in a row, largely inresponse to higher costs, according to the report.
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