Ireland’s manufacturing sector recorded its strongest growth in more than three years in June, defying concerns over global trade tensions and posting a sharp rise in employment and purchasing activity, according to new data released today.
AIB’s Manufacturing Purchasing Managers’ Index (PMI) rose to 53.7 in June, up from 52.6 in May, marking its highest level since May 2022. The index has now remained above the 50 mark — which separates expansion from contraction — for six consecutive months, signalling sustained growth in the sector.
The latest figures highlight renewed momentum in Irish manufacturing, with a surge in hiring driving much of the improvement. Employment in the sector increased at the fastest pace since June 2022, as firms responded to greater workloads and geared up for future growth. Many businesses cited long-term expansion plans and rising customer demand as reasons for increased staffing levels.
Purchasing activity also saw a notable jump, reaching a three-year high as companies moved to replenish inventories. The uptick was partly attributed to longer supplier delivery times, which prompted manufacturers to secure materials in advance amid expectations of continued demand growth.
Despite the surge in orders and employment, backlogs of work fell for a fourth straight month. This indicates that while activity is rising, there is no immediate strain on production capacity. New export orders, which had dipped sharply in May, remained in decline but showed signs of stabilising, coming close to returning to growth.
Looking ahead, business sentiment remains optimistic. Around 44% of manufacturers surveyed anticipate higher output in the year ahead, even as concerns over US trade policies and broader global economic headwinds persist.
That optimism comes in the face of recent warnings from both the Department of Finance and the Central Bank, which downgraded their economic growth forecasts due to global trade uncertainties. Ireland, as an EU member, is currently subject to 10% tariffs on approximately a quarter of its goods exported to the United States — a key market.
Despite these challenges, the resilience of the manufacturing sector offers a positive signal for Ireland’s broader economic outlook, particularly as firms continue to invest in staff and supplies in anticipation of future growth.
