Sharp fall in Irish manufacturing activity in June

Both new orders and output decreased for the fourth month running, with the latter contracting to the greatest extent in 11 months.

The reading highlights the fragile and volatile nature of the post-pandemic recovery that has been marked by high inflation.

There has been a sharp drop in manufacturing activity in Ireland, with June recording the most severe contraction in almost a year.

Businesses in the sector reported a drop in new orders and production as the impact of inflation continues to bite. The AIB Purchasing Managers’ Index (PMI) released today shows a reading of 47.4 in June, down from 49.8 in May. Anything below 50 indicates a contraction in activity.