2020.12.0107:59:00UTC+00Ireland Manufacturing Growth Improves In November

Ireland's manufacturing sector expansion improved for the fifth month in a row in November, survey data from IHS Markit showed on Tuesday.

The seasonally adjusted AIB factory Purchasing Managers' Index, or PMI, rose to 52.2 in November from 50.3 in October.

The latest reading was the third highest since April 2019. Any reading above 50.0 indicates expansion in the sector.

Volume of new orders rose for the first time in three months, mainly due to the volume of exports remaining unchanged.

Output rose four times in past six months in November and backlogs of work declined at the fastest rate since June.

Employment increased for the first time since August 2019 and reflected greater confidence regarding the future output trends, with firms' expectations the strongest since January.

Purchasing activity rose for the first time in four months and delivery time lengthened in November. Inventories of finished goods declined sharply in November.

The rate of input price inflation rose sharply since February last year and output prices rose for the second straight month, at the fastest rate since March 2019.

"The impact of the imminent end to the Brexit transition period manifested itself in some stockpiling, with purchases of inputs rising and a sharp jump in the stocks of inputs," Oliver Mangan, AIB chief economist, said.

"Overall, the November PMI data show that, as in other countries, the sector is coping well with the second lockdown and is increasingly confident about prospects for 2021," Mangan, said.