Irish manufacturing conditions deteriorate at fastest pace since April 2013

[DUBLIN] Irish manufacturing growth slowed in July at the fastest pace since April 2013, with output contracting at the sharpest and fastest rate in more than six years, a survey showed on Thursday.

The AIB manufacturing Purchasing Managers' Index (PMI) fell to 48.7 in July from 49.8 in June, below the 50 mark that separates growth from contraction for the second consecutive month.

Ireland's economy has so far weathered uncertainty created by Britain's 2016 vote to leave the European Union, but with no clarity on the terms of the departure, panellists said demand in both domestic and foreign markets deteriorated.

The sub-index measuring output prices fell to 47.0 from 50.5 in June.

Panellists said declining new orders contributed to a record build-up in the stocks of finished goods, with the sharpest and the fastest rate of accumulation in the series' history.

"The July PMI survey provides further evidence that the significant slowdown in global manufacturing is impacting activity in the Irish economy," said Oliver Mangan, AIB Chief Economist.

"The details of the report indicate that the weakness was quite broad-based across the various components of the survey."

Sentiment among Irish manufacturers fell to a three-year low against the backdrop of Brexit uncertainty, he said.

REUTERS