FX.co ★ Irish Manufacturing Growth Eases Slightly

The AIB Ireland Manufacturing PMI experienced a slight decline to 52.6 in May 2025, down from April's figure of 53.0, marking the strongest growth since June 2022. This decline comes amid concerns regarding tariffs and global trade tensions. Despite this, it represented the fifth consecutive month of growth in manufacturing activity, buoyed by a robust increase in total new orders, as stronger domestic demand mitigated the decline in international sales. Employment saw its sixth consecutive month of growth, with hiring rates escalating as companies responded to increased workloads. Furthermore, purchasing activity maintained its upward trajectory. On the pricing front, input price inflation slightly eased from its two-year peak in April, driven by rising raw material costs. Though output price inflation picked up as manufacturers offset these costs to customers, it remained significantly lower than the figures seen throughout the previous year. Lastly, business sentiment stayed positive despite the persistent challenges of geopolitical and tariff uncertainties.