Jobs surge in manufacturing sector
The PMI found the rate of job creation accelerated to the fastest in 12-and-a-half years.
Analysing the findings of the index, NCB economists found a rise in production was responsible for the jobs boost.
“Irish manufacturers took on extra staff at a marked pace that was the sharpest since Dec 1999. Reports suggested that job creation was mainly linked to rising production,” the PMI said.
According to the NCB research, new orders and new production in June rose at the fastest pace for more than a year.
The PMI reported new products were the main drivers of new business, leading to increased demand and subsequently more jobs.
The rise in manufacturing activity came on the back of almost nine months of contractions.
February and May were the only months in the last nine to show an increase in growth. In May, the PMI hit a positive 51.2 before increasing to 53.1 in June. Any figure over 50 indicates that the sector grew.
The news was greeted as further positive news on the back of the “major game changer” in the form of the European agreement on banks. Ensuring growth is considered key to an easing of the terms of its bank bailout to eat into a debt pile set to peak at 120% of GDP next year.
Ireland’s PMI readings have consistently out-performed the rest of the eurozone, but Finance Minister Michael Noonan warned that efforts to match last year’s GDP growth rate of 0.7% are dependent on the performance of its trading partners in Europe.
