Manufacturers weather the storm to create jobs

Ireland’s manufacturers managed to navigate the stormy weather and create the most jobs in four months in February, according to Investec’s monthly Purchasing Managers’ Index (PMI).

The Investec PMI posted a 52.9 in February, up from 52.8 in January, with any number above 50 indicative of growth. While the overall figures were relatively flat, chief economist with Investec Philip O’Sullivan said that there was positive developments in the job creation portion of the index.

“A key highlight of today’s release is the employment component. The survey shows employers added to payrolls for a ninth successive month in February, with the pace of increase improving to a four-month high. This job creation was underpinned by rising new orders (which expanded at the second-fastest pace in the current eight-month sequence of growth).

“New orders were aided by improved demand from Britain and Europe, which chimes with the pick-up in economic indicators in those crucial trading partners for Ireland,” he said.

If the weather had not been so inclement, manufacturers may have recorded stronger performance. The storms led to delays in raw materials, which may have a knock-on effect on the March figures.