DUBLIN (Reuters – The growth in Irish factory activity fell to a 6-month low in September, but remained near all-time highs. However, the sector showed signs of inflationary pressures as a survey revealed on Friday.

According to AIB IHSMarkit, the manufacturing purchasing managers’ index (PMI), fell to 60.3 in September. This is down from August’s record of 62.8 and May’s 64.1.

According to Oliver Mangan (AIB chief economist), September’s reading was the sixth most high-scoring since 1998 when the survey started. The survey also showed that there was a strong recovery in the sector, which was evident in Oliver Mangan who was AIB chief economist.

Mangan noted that there were signs that Ireland had been affected by similar trends in Europe’s rest, Mangan explained. In Europe, shortages of key inputs and raw materials were limiting manufacturing activity.

Sub-indices that measure output, employment, and new orders all declined, but input and output prices reached record heights.

Mangan stated that inflationary pressures were caused by difficulty in hiring employees, backlogs of orders, delays in supply chains, and longer delivery times.