Easing cost pressures give Irish manufacturers some breathing room -PMI


General view of the Grand Canal Docks area of ​​Dublin, Ireland, February 11, 2022. REUTERS/Clodagh Kilcoyne

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DUBLIN, Sept 1 (Reuters) – The pace of rising input and output costs for Irish manufacturers eased to their lowest level in months in August, offering some relief to businesses that could not only show modest overall growth, according to a survey released Thursday. .

The AIB S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 51.1 from 51.8, the lowest in nearly two years, but unlike flash data for the eurozone as a whole, it remained above the 50 mark separating growth from contraction.

The fall was driven by a third straight monthly contraction in output, where the rate of decline was the fastest in 18 months. Labor backlogs and new export orders also declined at a faster pace last month.

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Companies attributed the drop in production to a drop in demand that was partly linked to high inflation deterring new customers, the survey authors said.

While cost pressures remained among the highest levels seen in the series’ 20-year history, the input price reading fell to 75.7 from July’s 82.6 and helped bring back the producer price sub-index at 66.5 against 71.0 the previous month.

Supply chain pressures also remained intense, although the overall incidence of delays in delivery times was the lowest since November 2020.

“While inflationary pressures remain strong, there are signs that they are beginning to ease,” said AIB chief economist Oliver Mangan.

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Reporting by Padraic Halpin; Editing by Hugh Lawson

Our standards: The Thomson Reuters Trust Principles.

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