Ireland’s manufacturing sector experienced its slowest growth in 10 months in October, according to the AIB Ireland Manufacturing Purchasing Managers’ Index (PMI). The index fell to 50.9 from 51.8 in September, signalling stagnation in production volumes and only marginal increases in new business.

October marked the end of a nine-month streak of expanding production, with manufacturers citing weaker European demand and heightened competition as key challenges. Employment continued to rise for the eleventh consecutive month, though at a slower pace, as skill shortages constrained hiring.

Input cost inflation eased to a 17-month low due to falling raw material prices. However, wage growth and rising energy costs continued to exert pressure on margins. Output prices increased only modestly, at the slowest rate since May 2024, reflecting the competitive market environment.

Despite these challenges, manufacturers remain cautiously optimistic. Around 45% expect production to rise in the year ahead, with new product launches and expansion into overseas markets viewed as potential growth drivers. Confidence dipped slightly to a three-month low, but the majority of firms remain positive about medium-term prospects.

Ireland’s broader economy continues to demonstrate resilience. Modified domestic demand, the government’s preferred measure of economic performance, grew 3.8% year-on-year in the first half of 2025, supported by strong personal consumption, government spending, and investment. Reflecting this momentum, the finance ministry recently raised its full-year growth forecast to 3.3%, up from 2%, after the economy absorbed potential impacts from increased US-EU tariffs.

For industries reliant on manufacturing and export flows, these developments highlight the need to manage softening demand, rising costs, and competitive pressures while exploring international opportunities to sustain growth.

Read the full article for detailed insights into Ireland’s manufacturing trends and their implications for supply chains and strategic planning.