Irish manufacturing ended 2016 on a high note

PMI data suggests that the sector is 'getting back on track' following a Brexit dip...

Irish manufacturing ended 2016 on a high note

William Murphy, Flickr

Ireland’s Investec Manufacturing PMI shows that 2016 ended on a strong note with the index climbing to 55.7 in December - that's up from 53.7 in the previous month as activity rose at its fastest pace in 17 months.

The report notes that the sector exited the year "with a very strong tailwind behind it."

During 2016 the New Orders sub-index briefly sunk into negative territory following the UK's decision to leave the EU - but in December it expanded at its fastest pace since last January.

The rate of expansion in job creation accelerated for a third successive month at its fastest pace in 19 months.

This increase fueled a sharp rise in 'Backlogs of Work,' which rose for the third month in a row.

Meanwhile, Input Costs rose again as raw material costs increased, these costs were 'passed-on' as Output Prices rose.

Philip O’Sullivan Invcestec's Chief Economist commented: "The headline Manufacturing PMI has been consistently above the 50 ‘no change’ mark separating expansion from contraction for 43 months.

"While growth slowed precipitously following the UK’s Brexit vote, the accelerated pace of expansion seen since then shows that the sector has gotten back on track, presumably aided by the kicker from a strong US dollar and ongoing domestic strengthening."