The AIB Ireland Manufacturing PMI climbed to 55.4 in August 2026 from 55.1 in July, reaching its highest level in three months. New orders grew at their fastest rate in nearly four and a half years, underpinning a sharp rise in output. Production increased for the tenth consecutive month and at its strongest pace since April 2025.
Employment also increased for a ninth straight month, though the rate of job creation slowed from July’s multi‑year peak. Purchasing activity remained robust, and firms continued to build inventories amid ongoing supply-chain disruptions. Export demand, however, stayed muted, held back by the conflict in the Middle East, while transport delays and capacity constraints further lengthened supplier delivery times and added to backlogs.
Input cost inflation picked up, reflecting higher energy and raw material prices, even as output price inflation eased to a five-month low. Business sentiment strengthened to its highest level since January, with around half of manufacturers anticipating higher output over the coming year.
