Irish factories shed their Brexit gloom to book more orders, increase output and create new jobs

Irish factories shed much of their Brexit gloom as they expanded output last month, according to a major survey.

The AIB survey of purchasing managers in the manufacturing industry also showed that factories booked more orders, increased output, and took on more jobs following a number of months when fears about Britain crashing out of the EU had weighed on their prospects.

The PMI survey posted a reading in January of 51.4, a little above the 50 level that marks the difference between expansion and contraction in the industry. Nonetheless, sentiment improved markedly across a number of areas in the month.

“The survey shows marked improvements in key sub-components such as output, orders, and employment. New orders rose at their fastest pace since April, triggering a rebound in output. Notably, export orders, which had declined right through the second half of 2019, moved back into expansion territory in January, with firms reporting stronger business from the UK in particular,” said AIB chief economist Oliver Mangan.

“Improving orders and production levels saw firms respond with the first meaningful rise in the purchase of inputs since April and a return to hiring,” he said. In the final two months of 2019, Irish manufacturing had cut back on recruitment.

The Irish purchasing managers’ index is also closely watched across the world as a sign of the health of the wider global economy because so many multinationals supplying global markets are based here.

Meanwhile, an increase in business registrations showed the Irish economy remains healthy, according to business services firm Crif Vision-net. It said there was a record high of 22,774 new company registrations last year. At almost half of all new registrations in the State, Dublin still accounted for the lion’s share of all start-ups. Cork accounted for 10%.

“There is a certain degree of comfort that can be drawn from these figures, as they help to display the robustness of the Irish economy during a period of great uncertainty,” said Vision-net managing director Christine Cullen.