Ireland's manufacturing sector continued to deteriorate in March, although at a slower pace than in February, with output, new orders and job levels all falling considerably, data showed today.
The NCB Purchasing Managers' Index (PMI) survey, which measures Irish manufacturing activity, also showed that purchasing activity fell sharply in response to declining new orders.
The headline PMI edged up to 35.1 in March from the record low of 33.2 in February but still showed the second steepest decline in the sector's activity since the survey began in May 1998.
February was the 16th consecutive month the reading has been below the 50 mark separating growth from contraction after more than four years of sustained expansion.
“The weakness in manufacturing was evident in the Q4 2008 National Accounts which showed that Industry (ex. construction) was down 7.9 per cent year-on-year and by a large 10.2 per cent quarter-on-quarter,” said Brian Devine, economist at NCB Stockbrokers.
“The PMI readings for the first quarter 2009 suggest that there will be a further large contraction in industrial value added in the next national accounts,” Mr Devine added.
After a decade of unprecedented boom, Ireland has been hit hard by the global recession and a protracted downturn in its housing market.
Ireland's government will unveil an emergency budget next week as it is under pressure to salvage its goal of a fiscal shortfall of 9.5 per cent of gross domestic product this year, already the highest in the euro zone.
The employment component of the Irish PMI survey also suffered its second steepest fall of 33.3 in March compared with the lowest ever figure of 30.5 in the previous month.
“The pace of decline remained substantial as firms adapted to lower production requirements and attempted to reduce costs,” Markit, which compiles the survey, said of the job cuts in a press release.