“Irish Manufacturing Activity Contracts in April; Input Prices Fall for the First Time in 3 Years”

In April, the manufacturing activity in Ireland experienced a further contraction, as demand and confidence remained muted. However, the sector received some respite with input prices falling for the first time in almost three years. According to the AIB S&P Global Manufacturing Purchasing Managers’ Index (PMI), the index fell to 48.6 from 49.7 in March, thus holding below the 50 line separating expansion from contraction for the fourth time in the last six months. It is worth noting that factory activity had expanded for two-and-a-half straight years before that. Nevertheless, the recent deepening decline in output and sustained falls in new orders have not been as sharp as those observed in the euro zone as a whole. There was also a further easing of inflationary pressures, particularly in the cost of raw materials, which pushed input prices down for the first time since June 2020. The subindex measuring input costs fell to 48.8, after rocketing up to a record 92.7 in March 2022. On the other hand, output prices continued to rise, albeit at a slower pace than previously, with the subindex at 53.2 in April. -Reuters