DUBLIN (Reuters – Irish manufacturing activity saw a further decline from its record-breaking levels of 2021. A survey released Monday showed that the quarter ended at the third weakest point in more than twenty years.

According to the survey, the AIB IHSMarkit manufacturing purchasing managers’ index (PMI), fell from 59.9 November to 58.3 December. It had hit an all-time high of 64.1 in May. If the readings are above 50, it indicates that activity has increased overall.

The PMI recorded 60.1 in October-December, compared to 62.1 and 62.9 respectively in the previous quarters. However, it was higher than any quarter since the survey started.

The cost pressures were still intense, with fuel, transport and energy charges being cited as the main drivers of inflation. The subindex for input prices saw a decrease to its three-month lowest, but it is still significantly higher than the peak in October.

Manufacturers continued to charge higher prices to their customers. Output prices increased at the third-fastest pace since 2002 when data series began.

Oliver Mangan (AIB chief economist) stated, “Manufacturing is expanding at an accelerated pace with new orders recording another notable rise. But growth in export orders continues to remain muted.”

“The sector saw solid employment growth. Manufacturers expressed optimism about the 12 month outlook for production. This was its best performance since July.