DUBLIN, Ireland: Ireland's manufacturing sector saw orders slow in July.
It was further reported that the Allied Irish Banks Ireland manufacturing purchasing managers' index dropped to 51.8 in July from 53.1 in June.
"Although still above the neutral level of 50.0, the latest figure was indicative of the slowest improvement in the health of the sector since January 2021," noted Allied Irish Banks.
"The AIB Irish manufacturing PMI survey for July shows a continuing loss of momentum in the sector amidst a global slowdown in activity as demand weakens in the face of rising price pressures," said Oliver Mangan, Allied Irish Banks chief economist.
Allied Irish Banks added that demand fell both within Ireland and internationally, which was partially due to rising prices.
"The impact of weakening demand on Irish manufacturing activity was most evident in the second consecutive monthly contractions in both output and new orders," Mangan added. "The drop in new orders resulted in a further easing in capacity pressures, as evidenced by declining backlogs for a third month running. Weakening demand also saw stocks of finished goods rise for the first time in over a year."
Adding to fears among manufacturers, inflation in July rose at the fifth highest increase on record.
Also, as material shortages continued and transport delays were ongoing, manufacturers' delivery times lengthened in July.