The AIB Ireland Manufacturing PMI rose to 55.9 in May 2026 from 54.9 in April, marking a four-year high. Output growth accelerated to its fastest pace in a year, while new orders increased at the quickest rate since April 2022. This was driven by stronger domestic and external demand, with overseas sales recording their sharpest rise since August 2021.
Employment expanded at the fastest rate in almost four years as firms added capacity to handle rising workloads. Purchasing activity also picked up sharply, and manufacturers continued to build inventories amid ongoing supply chain concerns related to the conflict in the Middle East. Reflecting these strains, supplier delivery times lengthened to the greatest extent since October 2022.
Input cost inflation quickened to its highest level since July 2022, prompting firms to lift selling prices at the fastest pace since December 2022. Despite mounting cost pressures, business confidence improved from April’s 25-month low, underpinned by stronger order pipelines and planned investment.
