Irish manufacturing contracts again in April, PMI shows

DUBLIN (Reuters) - Irish manufacturing activity contracted in April at the fastest pace in nine months due to sluggish demand and a lack of incoming new work, a survey showed on Wednesday.

The AIB S&P Global manufacturing Purchasing Managers' Index (PMI) for Ireland fell to 47.6 in April, down from 49.6 in March, and 52.2 in February. It is below the 50 mark denoting growth for the fourth time in the past five months.

Respondents to the survey blamed overstocked customers and reduced spending among clients in the construction sector for a lack of incoming new work. The fall in new orders was the steepest since December 2022.

David McNamara, AIB's Chief Economist, said that while the fall in April was the sharpest since July 2023 it aligned with broader declines observed across other European PMI surveys last month.

Production levels decreased at the strongest pace for six months, and firms paused hiring, with no change in the employment index for April, ending a three-month stretch of modest job creation.

But despite the challenging environment, McNamara said that firms remain positive on the outlook for the next 12 months.

"Close to half of respondents still expect a rise in output volumes during the next year, compared to 14% who expect a decline," he said.

(Reporting by Graham Fahy; Editing by Hugh Lawson)