Brexit hits Irish manufacturing growth

Activity has dropped off since the UK decided to leave the EU

New manufacturing data shows a fall-off in activity in Ireland since the UK voted to leave the EU.

The Investec PMI dropped to 50.2 in July, down from 53.0 in the previous month.

Any reading above 50 indicates growth.

Export orders dropped for the second time in three months while there was a small fall in new orders during July.

Some sub-indexes declined at rates not seen since September 2011.

Investec Chief Economist Philip O’Sullivan commented on the numbers:

"Given the adverse move in the euro-sterling exchange rate, we think there will likely be downward pressure on output prices in the coming months.

"Notwithstanding the more unsettled backdrop, the Employment index remains in positive territory ... This is a disappointing, but not particularly surprising, report."