Irish factories take summer hit amid manufacturing downturn in Europe

Survey findings show the effects of rapid interest rate increases in Europe and the US

AIB Purchasing Managers' Index: Ongoing contraction in Irish manufacturing activity is in line with the trend in most other economies. Picture: David Creedon

Irish manufacturing activity contracted sharply again in July, reflecting weakened levels of global demand following the rapid rise in interest rates, the monthly reading of Irish factories has revealed.  

The AIB Purchasing Managers' Index showed that new orders contracted for the fifth month in a row, and by "the sharpest in the year so far", while demand from overseas also fell, "albeit at a softer rate", and that the fall in new orders for exports "was the fourteenth in successive months, but the weakest in 2023 to date".