Manufacturing output grows at fastest rate in 10 years

MANUFACTURING output in April grew at the fastest pace in 10 years, contributing to a further improvement in the overall conditions in the sector, a survey showed yesterday.

The NCB Purchasing Managers’ Index, which measures Irish manufacturing activity, rose to 53.4 in April from 53.0 in March, when it crossed the 50 mark separating growth from contraction with its highest reading since September 2007.

The sub-index measuring manufacturing output showed the fastest growth since April 2000, driven by new business.

New orders also grew markedly in April, Markit, which compiles the data, noted.

The data was collected by Markit between April 12-23.

“It is encouraging to see that not only is output continuing to expand, but also that new orders are continuing to expand,” Brian Devine, economist at NCB Stockbrokers, said.

The latest GDP figures showed that Ireland did not exit Europe’s longest-running recession last year as previously thought, but economists remained optimistic about a return to growth this year.

The Government maintains the economy will resume growth in the second half of the year, and brighter data for the start of the year bode well.

And across Europe the manufacturing industry expanded at the fastest pace in almost four years in April as companies increased production to meet export orders.

The PMI index based on a survey of euro-area purchasing managers increased to 57.6 from 56.6 in March, London-based Markit Economics said.