Ireland’s factory activity expanded at a steady pace at the start of the year amid sustained gains in output, new orders, and employment, survey results from S&P Global showed on Tuesday.
The seasonally adjusted AIB Ireland Construction Purchasing Managers’ Index came in at 52.2 in January, unchanged since December. A score above 50 indicates contraction in the sector.
Among components, output and new orders rose at weaker rates in January, linked to lackluster export demand and hesitancy among clients in response to heightened economic uncertainty.
Meanwhile, employment growth accelerated to a 6-month high as long-term business development plans and projected improvements in customer demand had encouraged greater staff recruitment in January. Manufacturers raised purchasing activity at the fastest pace since June 2025.
On the price front, input price inflation quickened to a 3-year high due to higher raw material prices and efforts by suppliers to pass on rising wage costs. However, selling prices increased to a much lesser extent than input costs, as pricing power was weighed by subdued demand and international competition.
Looking ahead, Irish goods producers are optimistic about their growth prospects for the next 12 months, with business confidence rising to its highest since August 2023 amid hopes of a turnaround in global demand conditions and improved export opportunities.
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