02.01.202601:13:59UTC+00Irish Manufacturing Growth Remains Solid

The AIB Ireland Manufacturing PMI slightly decreased to 52.2 in December 2025 from 52.8 in November, maintaining its position above the 50 mark for the twelfth consecutive month and indicating ongoing expansion in the manufacturing sector. While output growth continued for a second month, the rate of expansion decelerated from November’s four-month peak. New business experienced only a slight increase due to subdued export demand and heightened competition affecting overall order growth. Employment emerged as a significant positive factor, with manufacturers boosting their staffing levels for the thirteenth consecutive month at an accelerated pace, thereby aiding in the further reduction of backlogs. Although purchasing activity remained expansionary, it slowed to its lowest point in four months. In terms of pricing, input cost inflation accelerated to its highest rate since July, while output price inflation decreased to its lowest level since May 2024. Looking forward, manufacturers maintained an optimistic outlook for output growth in 2026, albeit with a slight decline in business sentiment from November’s 11-month high.