Ireland’s manufacturing sector has experienced its strongest surge in sixteen months over the course of May, according to the Purchasing Manager’s Index published this morning.
This conforms to figures released yesterday which show that manufacturing activity in both the US and Europe also expanded in May, indicating that global economic recovery is intensifying.
Both the US and European indexes showed, however, that the global demand behind the expansion also pushed up costs of raw materials.
According to NCB Stockbrokers, who published this morning’s figures, the volume of new orders rose for the fifth successive month as did the rate of demand.
Demand for Irish manufactured goods also rose rising for the fifth although the growth of export books was subdued.
Abroad, the US-based Institute for Supply Management said its monthly manufacturing index rose more than expected in May to 55.7 - its highest level since hitting 56.7 in February 2000 - from 53.9 in the prior month. Any reading above 50 suggests growth, while one below 50 indicates contraction.
The euro zone Purchasing Managers' Index also rose - to 51.5 in May - the highest since February 2001.
Most analysts say the figures indicate a rebound from a year-long downturn that is likely keep the US Federal Reserve and the European Central Bank from lifting interest rates in coming months.