Key insights
- Ireland's manufacturing PMI surged to a four-year high in May, driven by robust new orders and export growth to the UK, US, and Asia. This indicates strengthening global demand, which could positively impact US manufacturers through increased export opportunities. However, rising input costs and supply chain pressures suggest potential inflationary headwinds that could influence Fed policy.
Investing.com -- Ireland’s manufacturing sector expanded at its strongest pace in four years during May, according to the latest AIB Ireland Manufacturing PMI data released Tuesday.
The headline PMI rose to 55.9 in May from 54.9 in April, marking the highest reading since May 2022. Any figure above 50.0 indicates sector improvement.
New orders increased at the fastest rate in just over four years, with manufacturers reporting stronger demand from both domestic and export markets. Export orders grew at the steepest pace since August 2021, with improved sales to clients in the UK, US and Asia.
Production volumes rose for the seventh straight month, with the rate of output growth accelerating to its strongest since May 2025. Manufacturers cited improving customer demand and long-term business expansion plans.
Employment levels increased markedly, with the rate of job creation reaching its strongest in nearly four years. Companies pointed to ongoing investment plans and the need to expand operating capacity.
Supply chain pressures intensified, with average lead times among vendors lengthening at the sharpest rate since October 2022. This was primarily linked to international shipping delays and some raw material shortages.
Input costs increased at the fastest rate since July 2022, with more than half of surveyed manufacturers reporting higher purchasing costs. The rise was mainly attributed to higher fuel and raw material prices. Factory gate prices increased at the strongest rate since December 2022 as firms passed on higher costs to clients.
Purchasing activity expanded, supported by improved order books and efforts to boost warehouse inventories. Stocks of purchases and pre-production inventories both increased, partly due to concerns about global supply chains.
Backlogs of work accumulated for the third consecutive month, with the expansion the steepest since April 2022, as rising demand and worsening supply conditions affected production schedules.
Business activity expectations rebounded from the 25-month low seen in April. Around 47% of manufacturers predict an increase in output over the next year, while only 10% forecast a reduction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
The best investments start with better data. Going with your gut has its place, but when excitement masquerades as intuition, it can lead to costly mistakes—or analysis paralysis. InvestingPro combines institutional-grade data with AI-powered insights that you don't need a finance PhD to understand. It won't guarantee winners, but it will certainly help you find more of them, more often. So what are the best investments of 2026 so far?