Manufacturing growth rate slowest in 9 months

The country’s manufacturing sector showed its slowest rate of growth for nine months in January, according to new data.

The latest monthly purchasing managers’ index from NCB Stockbrokers measured a 50.3 point reading for manufacturing industries last month. This continued a recent downward trend — as December showed a 51.4 point reading and November a 52.4 point showing.

Any reading over the 50 point mark, however, illustrates a sector in growth mode, while anything below represents decline.

Therefore, Ireland’s manufacturing sector remained in growth mode in January, and kept that growth going for the 11th consecutive month.

However, NCB described January’s showing as “a sluggish start to 2013”.

“While output remains in positive territory and new export orders grew for a fourth successive month — indeed, exports have grown in 10 of the past 11 months — other areas showed signs of weakness,” said NCB’s chief economist, Philip O’Sullivan.

“New orders declined marginally in January, with some panellists noting weakening client demand.

“This snapped a run of 11 months in which that index had recorded growth. Another good run that was brought to an end was in the employment category, which dipped into negative territory after 10 consecutive months of growth, with weaker demand again cited as a factor behind this.

“Over the past few months, we have noted a mismatch between input and output prices. During January, output prices declined for the second time in three months, while input prices advanced for a sixth successive month,” he said.

While new export orders were up for a fourth month, they grew at their slowest pace. While some respondents said they saw some weakening in client demand last month, others said export market activity had supported their overall new business levels.