| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy

Finfacts changes from 2015


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate




Content Management by interactivetools.com.

News : Irish Economy Last Updated: May 4, 2015 - 10:25 AM

Irish manufacturing PMI remained strong in April- includes overseas manufacturing
By Michael Hennigan, Finfacts founder and editor
May 1, 2015 - 8:24 AM

Email this article
 Printer friendly page

The Irish manufacturing PMI remained strong in April but this survey data is polluted by booking of overseas manufacturing in Ireland for tax avoidance purposes.

Official data showed last month that on an annual basis production for February 2015 increased by 31.8% when compared with February 2014 — manufacturing output could jump by almost a third in a year!

Although new work increased at a slightly weaker pace, the rate of production growth picked up according to the Markit PMI survey. The weakness of the euro continued to impart inflationary pressure on firms’ costs, but this was mitigated to some extent by a first increase in output prices in 2015 so far.

The seasonally adjusted Investec Purchasing Managers’ Index (PMI ) — an indicator designed to provide a single-figure measure of the health of the manufacturing industry — registered at 55.8 in April, thereby signalling a further sharp monthly improvement in business conditions.

However, the reading was down from 56.8 in the previous month and pointed to the weakest strengthening of operating conditions in three months. The rate of expansion in manufacturing output quickened in April and was substantial. Where production increased, this was linked to strengthening client demand, with some firms specifying increased new export orders. Data signalled growth of both total new work and new export business, although in both cases the rates of expansion were slower than seen in March.

Markit says new product launches and the weakness of the euro reportedly helped firms to secure new work. Where new export orders increased, the UK was again mentioned as a source of new business. Rising output requirements led to another sharp rise in employment at Irish manufacturing firms. This rise in operating capacity was not sufficient to prevent a third successive monthly accumulation of backlogs of work, although the latest increase was only fractional. Input price inflation was recorded for the second month running, again linked to the weakness of the euro against both sterling and the US dollar.

"Moreover, the rise in costs during April was the sharpest since September 2013. In response to higher cost burdens, firms increased their output prices, the first time in 2015 so far that inflation of charges has been recorded. A further marked increase in purchasing activity was recorded in April, with the rate of growth little changed from the previous month. This added capacity pressure to suppliers, resulting in another lengthening of lead times. Modest declines in both stocks of purchases and finished goods were recorded in April. Preproduction inventories fell as inputs were used to support growth of output, while the use of finished goods to help fulfill order requirements led to a decrease in post-production inventories. "

The Irish manufacturing sector is dominated by US-owned firms and a higher dollar versus the euro hikes import costs.

Related Articles

© Copyright 2015 by Finfacts.ie

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March