Hiring accelerated in December, the latest AIB Ireland Manufacturing PMI survey shows.
The wider December data shows a moderate upturn in the performance of the Irish manufacturing sector, helped by sustained rises in output, new work and employment.
Some loss of momentum since November was largely due to weaker new order growth.
The purchasing managers index (PMI) arrives at a single number composite indicator of manufacturing performance based on a wide, ongoing survey of firms to factor in data on new orders, output, employment, suppliers’ delivery times and stocks of purchases.
Any figure greater than 50.0 indicates growth while numbers from 50 down show contraction.
December’s 52.2 reading eased from November but remained above the neutral threshold for the 12th consecutive month.
Recruitment was a bright spot during December as producers took on more staff to meet new projects and deliver long-term capacity expansion plans.
Employment rose in each of the past 13 months and the greater workforce numbers contributed to a renewed fall in backlogs of work across the manufacturing sector.
AIB chief economist David McNamara said the latest data suggested growth eased in December, but the Irish manufacturing PMI remains above the flash, or early estimated readings for the eurozone, UK and US at 49.2, 51.2 and 51.8 respectively.
“Output saw robust growth in December, with respondents citing stronger order books. This was also reflected in a continued rise in new orders, albeit export orders fell marginally,” he said.
Survey returns showed firms stated that additional staff had been recruited to deliver new projects and long-term expansion plans, he said.
Cost inflation was up, however, linked to raw material costs which is an ongoing trend in the survey in recent months.
The data suggests manufacturers are absorbing much of the increase, while output price inflation slowed to the weakest pace since May 2024 last month.
Sentiment remains positive among business managers, Mr McNamara said.
“Irish manufacturers maintained a positive assessment of the outlook for future activity levels, with the sentiment index remaining at relatively high levels. Around 42pc of firms predict a rise in activity in the year ahead, while only 6pc forecast a reduction. Manufacturers linked business optimism to improved export sales in the coming year,” he said.
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