FX.co ★ Irish Factory Activity Remains Stable in January

In January 2026, the AIB Ireland Manufacturing PMI held steady at 52.2, consistent with December 2025, representing the 13th successive month of growth. This stability was attributed to continuous gains in output, new orders, and employment. However, output expansion decelerated to its slowest rate in three months, affected by tepid foreign sales amidst prevailing economic uncertainties. On the other hand, employment rose more rapidly, and inventory levels saw renewed accumulation, which helped balance the softer growth in output and new business. The pace of purchasing activity surged to its highest since June 2025, although delivery times worsened significantly, reaching their longest delays since May 2025 due to persistent transportation challenges. Input costs spiked to their highest inflation rate in three years, fueled by escalating raw material expenses and increasing wage pressures, leading to an uptick in selling prices, albeit not as sharply as input costs. Notably, business sentiment reached its most optimistic point in almost two-and-a-half years, buoyed by anticipation of improving global demand conditions.