Manufacturing sector growth eased in December
Growth in the manufacturing sector eased in December, according to the latest AIB Purchasing Managers Index.
The headline index dropped slightly to 52.2 in December compared to 52.8 in November.
Readings above 50 indicate overall rises in activity.
The latest reading was also fractionally above its long-run average (52.0) and signalled a moderate overall improvement in manufacturing sector performance.
The rise in activity in December was driven by gains in current output, new orders and employment.
The Irish manufacturing PMI remains above the flash December readings for the Eurozone, UK and US at 49.2, 51.2 and 51.8, respectively.
Commenting on the survey results, David McNamara, AIB Chief Economist, said: "Irish manufacturers maintained a positive assessment of the outlook for future activity levels, with the sentiment index remaining at relatively high levels. Around 42% of firms predict a rise in activity in the year ahead, while only 6% forecast a reduction.
"Manufacturers linked business optimism to improved export sales in the coming year," said Mr McNamara.
The report shows output growth was maintained in December, although the rate of expansion slipped from November's four-month high.
Where higher levels of production were reported, this mainly reflected improved order books.
It also showed total new work increased only slightly at the end of 2025 and the pace of growth lost momentum since November.
A renewed dip in export sales weighed on manufacturing order books, and survey respondents also commented on subdued demand conditions and intense competition for new work.
However, recruitment was a bright spot during December, employment has now risen in each of the past 13 months and the rate of job creation acceleratedsince November.
Supply chain performance remained a challenge for manufacturing firms in December.
The report highlights the overall rate of input price inflation was the fastest since July, but factory gate prices rose only fractionally and at the slowest pace for 19 months, with survey respondents widely commenting on squeezed margins and intense price competition.
