Irish factories record steep drop in production as inflation hits record levels 

Inflation pressures are unlikely to ease according to experts

A fall in manufacturing production also lead to a steeper drop in backlogs and latest data showed a further easing of pressure on supply chains.

Irish factories recorded the steepest decline in production since February 2021, as well as the third successive monthly decline in new orders in August.

The loss of momentum in the sector reflects faltering demand in the face of rising inflation, according to AIB’s latest Purchasing Managers Index (PMI).