The Irish manufacturing sector grew in November at the slowest rate in eight months, according to an AIB index that tracks activity in the sector.
The bank’s manufacturing purchasing managers index (PMI) said growth was still strong, but the rate eased compared to October. The index suggests supply chains in manufacturing remained “under severe pressure” in November, but there “was evidence of less pressure” compared to the previous month.
The PMI suggested employment in the manufacturing sector grew in November for the 14th month running, but the growth rate was the weakest since February, the bank said.
The rate of expansion of the manufacturing sector’s output slowed for the fifth time in six months, but remained strong, said AIB. The rate of growth of new orders also slowed, but is still at historically high levels. There is a backlog of manufacturing orders to complete right across the sector, which AIB attributed to “raw material and component shortages, and transport delays”.
“Capacity constraints are still very evident in the sector,” said Oliver Mangan, AIB’s chief economist. “Inflationary pressures . . . remain very strong.”