Industrial output rises at slowest pace since the spring

IRISH manufacturing output increased at the slowest pace in seven months in October.

This is according to the latest Manufacturing Purchases Managers Index (PMI) from ISH Markit.

The PMI – an indicator designed to provide a singlefigure measure of the health of the manufacturing industry – posted 54.9 in October, down from 56.3 in September.

Any reading over 50 is deemed growth.

The trend was worse in the UK, with manufacturing growth there now at the slowest level since the aftermath of the Brexit vote in 2016.

At home, many firms surveyed attributed the rise in output last month to increased client demand and greater sales.

While new orders continued to rise during October, the rate of expansion slowed for the second month in a row.

Volumes of new work from abroad also rose, albeit at the softest rate for three months.

Demands

Despite concerns around Brexit, some respondents reported increased demand from the UK.

Cost burdens increased during October, the report found, fuelled by rising raw material prices, particularly for steel and timber.

In response, manufacturers increased their prices, with the rate of charge inflation hitting a five- month high.

Overall, and while falling to an 11-month low, business optimism regarding output over the next 12 months was sustained in October.

Panellists were especially hopeful of increased export orders, particularly in Asia and the US.