Manufacturing output falls for first time in 15 months

THE recent growth in the manufacturing sector came to a sudden halt last month, with output falling for the first time since the early part of 2010 and new orders declining for the first time in nine months.

The latest purchasing managers’ index (PMI) for the sector, from NCB Stockbrokers, shows that the overall index fell from a reading of 51.8 points to 49.8 points in June. It is the first time the index has fallen below the neutral 50 point mark — dividing growth and decline — since April of last year. Fragile client confidence was alluded to by respondents, for the turnaround after 15 straight months of output increases.

NCB’s chief economist, Brian Devine, said the results of the June survey were worrying, but added that the expansion of new export orders to expand offers some comfort.