Stockpiling and ramping up operations ahead of Brexit has helped in boosting production levels.
As per the results of a survey released on Monday, Irish manufacturing activity grew at an almost identical rate in March compared to February. An increase in stockpiling ahead of Brexit was the most likely reason for the increase in growth.
The AIB manufacturing purchasing managers’ index stood at 53.9 in March versus 54.0 in February, extending the run of consecutive monthly growth to almost six years.
While Ireland’s fast growing economy has weathered the uncertainty created by Brexit, February’s survey showed that manufacturers were ramping up their preparations as Brexit approached by adding to their pre-production inventories.
“The sub index measuring stocks of purchases rose further to 56.4 in March from 55.6 in February, another fresh high in the 21-year history of the survey as its authors pointed to anecdotal evidence from panelists that they had brought forward stock purchases to secure supplies in the event of disruption”, reads a report from Reuters.
While this can be attributed to the dip in the level of output growth in February, new business from abroad increased at their fastest pace in four months, midst reports of greater demand from UK firms.
“Overall, the continued strength of the Irish Manufacturing PMI is very notable given the loss of momentum in the sector globally in recent months, especially in Europe,” said AIB Chief Economist Oliver Mangan. “It augurs well for the growth prospects of the Irish economy this year.”