Ireland's March manufacturing growth accelerates, but costs soar

LootboxPhobia · 2026-04-01T06:34:39+00:00

Ireland's March Manufacturing PMI rises to 53.7, indicating strong growth. Increased demand and new orders drive continuous production growth, with export sales reaching the fastest growth rate since 2022. Despite ongoing supply chain challenges, manufacturers remain optimistic about the future, though the growth rate has slightly slowed. Cost pressures are evident, with raw material and factory gate prices continuing to rise.

LootboxPhobia

2026-04-01 06:34:39

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Investing.com – Based on the AIB Ireland Manufacturing PMI data released on Wednesday, Ireland’s manufacturing sector showed strong growth in March, with output expanding at the fastest pace since July 2025.

The March PMI rose from February’s 53.1 to 53.7, reaching the highest reading since June 2025. Fueled by improving demand conditions and the strongest growth in new orders in four months, production increased for a fifth consecutive month.

Export sales recorded strong growth, the fastest pace since February 2022. Manufacturers reported rising demand from developed economies, especially the UK.

Stronger demand led to a modest increase in work-in-progress, with backlogs reaching the largest rise in 13 months. Employment continued to grow steadily, although the rate of job growth eased slightly compared with the 44-month peak in February.

Supply-chain challenges persisted, as delivery times were extended for the 11th consecutive month due to international shipping delays. Concerns about transportation delays and future price increases prompted manufacturers to purchase raw materials earlier, with input procurement expanding by the largest margin since June 2025.

Input-cost inflation surged to a 39-month high, with about 42% of surveyed firms reporting higher input prices. Manufacturers cited rising costs for energy, fuel, metals, and polymers.

Factory-gate prices increased at the fastest rate since September 2024, as manufacturers passed on higher fuel and raw-material costs, despite intense competition limiting their pricing power.

Expectations for business activity over the coming year remained positive, but slowed for the second consecutive month, falling to the lowest level since July 2025.

About 44% of manufacturers expect next year’s output to increase, while 10% expect it to fall. Some firms said the war in the Middle East will have an adverse impact on customer demand and growth prospects.

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