Ireland’s manufacturing sector recorded its strongest expansion in seven months in February, supported by higher output and a rebound in new orders, according to a survey released on Monday.
The AIB Ireland Manufacturing Purchasing Managers’ Index (PMI) climbed to 53.1 in February from 52.2 in January, the highest reading since July 2025. Readings above 50 indicate growth in activity.
The survey highlighted a recovery in export demand after two months of contraction. New orders from key markets including Asia, the United Kingdom, and the United States contributed to the improved performance.
Job creation in the sector accelerated to its fastest pace since June 2022, as companies sought to expand production capacity to meet rising workloads.
Despite the positive momentum, manufacturers faced mounting challenges from supply chain disruptions and rising costs. Input prices increased at the fastest rate in three years, driven by higher raw material and transportation costs.
Delivery delays were reported as the most widespread since November 2022, linked to logistical bottlenecks and stock shortages at suppliers. These issues tempered the pace of expansion, even as overall growth strengthened.
Analysts noted that while the sector’s performance signals resilience in the face of ongoing global supply chain pressures, firms must manage costs carefully to maintain profitability.
The survey suggests that Ireland’s manufacturers are benefiting from stronger international demand while navigating persistent operational hurdles. The acceleration in hiring indicates that companies are preparing to sustain output growth in the coming months.
The PMI data reflects both optimism and caution: production and new work are rising, but supply chain and cost pressures remain significant factors shaping the industry’s trajectory.
Overall, Ireland’s manufacturing sector appears positioned for continued growth, with firms adapting to increased workloads and global demand while managing inflationary pressures and delivery challenges.
