DUBLIN, May 1 (Reuters) – Irish manufacturing activity grew at the fastest pace in four years in April, but firms also faced their sharpest rise in input costs since September 2022 on the back of the war in the Middle East, a survey published by S&P Global showed on Friday.
The AIB Ireland Manufacturing Purchasing Managers’ Index (PMI) improved to 54.9 from 53.7 in March, its highest level since May 2022. Any reading above 50 indicates growth in activity.
“The expansion in April was due to sustained gains in output and new export orders, in part reflecting a temporary boost to demand and stock building due to the Middle East conflict,” said AIB’s Chief Economist, David McNamara.
But the rate of input inflation also accelerated sharply, with raw materials, shipping costs and fuel surcharges the key drivers, McNamara said.
Expectations regarding business activity in the year ahead also took a hit, with around 38% of the survey panel forecasting an increase in production, down from 44% in the prior month, the survey found.
(Reporting by Conor Humphries; Editing by Hugh Lawson)
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