Irish manufacturing defies war fears as employment climbs despite 'intense' inflation        

Azov regiment members walk with civilians during UN-led evacuations from the sprawling Azovstal steel plant, after nearly two months of siege warfare on the city by Russia during its invasion, in Mariupol.

Irish manufacturing defied fears of any marked slowdown in activity in April despite the Ukraine war, as employment climbed and cost inflation pressures for factories  "remained intense", a major survey has found. 

The AIB Irish Manufacturing Purchasing Managers Index posted a strong reading of just over 59 - where any reading above 50 means activity is expanding and not stagnating. The survey will likely boost hopes that the Irish economy could escape the worst effects of the war.    

Manufacturing employment, which expanded in the month at the fastest rate since the survey started in 1998, will be especially welcomed.       

Fears have been growing that a potential slump in consumer spending as the war helps drive inflation to its highest for many decades could lead to stagflation in major eurozone economies. 

April's survey nonetheless confirms that cost pressures facing Irish manufacturers were severe, but that businesses were able to pass on the higher costs by increasing prices.                    

"Inflationary pressures remain intense," according to the survey. 

Some 80% of manufacturers reported higher input prices in the month, including increases in raw materials, energy and fuel costs. Faced with surging input prices, manufacturers raised their own prices by a survey-record degree for a second successive month.

Ireland's inflation rate rose to 7.3% in April from 6.9% in the previous month, according to CSO and Eurostat figures under the Europe-wide harmonised measure published on Friday. The average in April across the whole of the eurozone was 7.5%.