Ireland Aug. manufacturing PMI falls to 51.6 vs 53.2 in July

Ireland Aug. manufacturing PMI falls to 51.6 vs 53.2 in July

The August Manufacturing Purchasing Managers’ Index (PMI) for Ireland has dropped to 51.6, a significant decline from July's reading of 53.2. This downturn was primarily driven by a decrease in export sales, which has slowed the growth of the manufacturing sector [1].

The AIB Manufacturing PMI, which is based on indicators for new orders, output, employment, suppliers’ delivery times, and stocks of purchases, showed that while production volumes in August were modestly higher, the rate of expansion and overall business growth were at their weakest since January. New orders reported in August reached a seven-month low, signaling only a marginal improvement in order books. Firms cited sluggish sales pipelines and intense competition as reasons for the decline in export sales, particularly from UK clients [1].

Despite these challenges, business optimism for the year ahead rose to its highest level since December 2024. Approximately 44% of respondents predicted an increase in output levels over the coming year, up from 35% in July. This optimism was linked to expectations of an improvement in the global economic backdrop and a subsequent rise in customer demand, as well as favorable market conditions in the agri-food sector [1].

Staffing levels continued to increase, although job creation eased slightly. Overall manufacturing costs increased at a solid pace during August, driven by higher raw material costs passed on to companies. However, the rate of inflation was at its slowest in more than a year [1].

In contrast, Irish Distillers, which produces Jameson Irish whiskey, reported a 2% increase in global net sales for its full financial year ending June 30, 2025. This resilience was particularly notable in markets across Asia, Africa, and Latin America, where Jameson saw double-digit net sales growth [2].

Despite this positive performance, Pernod Ricard, the parent company of Irish Distillers, reported a 3% fall in full-year 2025 organic sales, which met analysts' expectations. The company expects lower first quarter revenues in 2026 due to tariff uncertainty and sliding sales in the US and China. However, Pernod Ricard remains optimistic about future sales trends, projecting between 3% and 6% annual organic sales growth for 2027-2029 [2].

References:
[1] https://www.irishexaminer.com/business/economy/arid-41696918.html
[2] https://www.rte.ie/news/business/2025/0828/1530546-pernod-ricard-quarterly-results/