Manufacturing on rise but strong growth ‘long way off’

Ireland’s manufacturingsector is showing gradual signs of recovery according to the results of a new survey, but its authors still maintain a return to strong growth is some time off.

Although the latest edition of the monthly Investec purchasing managers’ index shows a reading below the neutral 50 point mark (49.7 for May) which traditionally separates an industry in decline from one in growth mode; the findings suggest the country’s manufacturing sector is moving closer to stabilisation.

Key measurement optics such as production output, new business orders and employment all decreased at weaker rates than previously, during May; while the latest survey also showed signs of inventory building as post-production inventories increased and stocks of purchases stabilised.