Manufacturing growth hits three-month high

Though there's a warning, inevitably, that Brexit will impact the Irish market

Manufacturing growth hits three-month high

William Murphy, Flickr

Ireland's manufacturing sector bounced back after a poor May showing to reach a three-month high for growth in June.

The Investec Manufacturing Purchasing Managers' Index climbed to 53 from a May ranking of 51.5, the lowest reading in close to three years.

The reading has now stayed above that 50 mark which demarcates growth from contraction for 37 months.

The survey, however, was concluded on June 23rd, the day before the Brexit vote and the UK's decision to leave the EU looks set to negatively impact the market.

The UK is Ireland's second largest market when it comes to Irish merchandise exports, with one in seven Irish manufacturers selling products in the UK.

Investec chief economist Philip O'Sullivan said:

"Given sterling's recent sharp fall against the euro and wider global uncertainties, we are cautious around the near-term prospects for this component.

"There are some indications within the report that firms were conservatively positioned going into the referendum.

"For a second month in a row there was only a very slight increase recorded in the quantity of purchases index, while stocks of purchases contracted for a second month running."