Irish production grows after 'fresh rise' in export sales

Operating conditions improve in manufacturing sectors, says latest PMI

A strong increase in new orders saw operating conditions across Ireland’s manufacturing sector improve solidly in November, supported by a “fresh rise” in new export sales. Picture: iStock

A strong increase in new orders saw operating conditions across Ireland’s manufacturing sector improve solidly in November, supported by a “fresh rise” in new export sales.

The latest AIB Irish Manufacturing Purchasing Managers’ Index (PMI) published on Monday showed that following only a slight improvement in October, there was a renewed growth in production last month.

After 2025 was shrouded in uncertainty as tariff fears surrounding the Trump administration fuelled concerns, the latest PMI showed optimism surging to an 11-month high. 

The level of new export orders placed with Irish goods producers expanded in November following three consecutive months of decreases. The pace of growth indicated only a minimal rise overall, but the sharpest since March. Around 22% of respondents reported higher new export orders, while 16% noted a decline.

“Growth picked up in November, with the index at 52.8 compared to 50.9 in October. The improvement in manufacturing conditions in November was driven by strong gains in current output and new orders. The Irish manufacturing PMI remains above the flash November readings for the Eurozone, UK and US at 49.7, 50.2 and 51.9, respectively,” said AIB chief economist David McNamara. Any figure greater than 50.0 in the headline PMI indicates overall improvement of the sector.

Output saw renewed growth in November, with respondents citing stronger demand conditions.

While there were many positives in the latest PMI, the employment picture showed signs of further cooling.  The slowdown “to near stagnation” in employment extends a recent trend of weakening growth in hiring. Hiring activity came to a near standstill in the latest survey, with the growth rate the slowest in the current 12-month upturn. 

"Manufacturing companies based in Ireland broadly halted their hiring activity in the penultimate month of the 2025. The latest uptick in workforce numbers was the weakest in the current 12-month period of growth," the PMI findings stated.

Firms also reported a resurgence in backlogs, signalling rising pressures on capacity. The pace of backlog accumulation was the strongest since February. A number of respondents linked the increase in outstanding work to higher new order intakes.

The incidence of delays was at its most pronounced in three years, with transportation and congestion issues frequently reasons cited for longer deliveries.

Elsewhere, the purchases index remained in expansionary territory in November, albeit the pace of growth was moderate. 

"Irish manufacturers maintained a positive assessment of the outlook for future activity levels, with the sentiment index reaching its highest level in nearly a year. Manufacturers linked business optimism to improved sales and expected new contracts in the coming year," said Mr McNamara.

Regarding pricing, Irish goods-producing firms encountered increased cost pressures in November, with reports of widespread price hikes. The rate of input price inflation was faster than seen in October, albeit still slower than the long-run average. Companies were relatively cautious in transferring these higher costs to their clients.

Irish manufacturing firms recorded a sharp increase in their operating expenses last month, reflecting hikes in raw material costs.

The AIB Ireland Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 250 manufacturers. The monthly indicators of economic trends are carried across the eurozone and overall in 40 countries worldwide.