Irish manufacturing hits 4-year low

The Irish manufacturing sector experienced its first dip in more than four years in December, new data showed today.

The NCB Purchasing Managers' Index, which measures activity in the manufacturing industry, fell to 49.5 last month, the first time it has fallen below 50 since 2003.

"Output and orders both softened and employment also dipped. Input prices grew at a somewhat slower pace and prices charged grew slowly," said Eunan King, senior economist at NCB Stockbrokers.

New order volumes fell during December to 48.8, hit by increased competition and a general deterioration in demand. Output rose during the month, measuring 50.4 on the index, but at a much slower rate than November. The fall in new orders also had a knock-on effect for input buying, which fell for the first time in more than two years.

Manufacturers were also hit with higher costs in December, with rising prices for fuel and plastics blamed. Higher food costs were also noted. However, the rate of input price inflation eased from the nine-month peak seen in November, and although prices charged continued to rise, the rate of increase was also weaker than in recent months.

Meanwhile, employment also fell slightly, to 49.2, as productivity improvements amd lower new order volumes affected employee numbers.