Ireland shrugs off international instability with strong manufacturing growth

The sector has not been affected by global economic jitters

Ireland shrugs off international instability with strong manufacturing growth

William Murphy, Flickr

Growth in Ireland's manufacturing sector sped-up during the first quarter of 2016 according to the Investec Purchasing Managers’ Index (PMI).

The reading rose to 54.9 in March, up from 52.9 in February - any value over 50 indicates growth. This was the strongest month since July of last year.

These figures indicate that Ireland's economy is weathering the international instability that has rocked markets early in 2016.

The rate of job creation increased for the third month in a row. The growth is being driven by an increase in new business, the new orders index measured 56.5 - up from 54.0 in February.

The expansion is slower than the 56.5 recorded 12 months previously, but it is coming from a higher base.

Philip O'Sullivan, Chief Economist at Investec Ireland commented on the results:

"The implied pace of expansion remains slower than the strong growth that was seen for much of 2014 and the first half of 2015. Our mantra for some time has been that Ireland will not be immune to any slowdown in international trade.

"However, with the sequence of growth in the quantity of purchases index now extending to 26 months and firms continuing to recruit staff, it is clear Irish manufacturers are confident that they can safely navigate through choppier waters," he continued.