​The manufacturing sector expanded at a modest pace in September, supported by stronger new orders and solid employment growth. This marks the ninth consecutive month of expansion, according to the latest survey results.

AIB's Manufacturing Purchasing Managers Index (PMI) rose slightly to 51.8 from 51.6 in August. The index has stayed above the 50 growth threshold throughout 2025.

Ireland’s economy, measured by modified domestic demand (MDD), has performed strongly in recent years. In the first half of 2025, MDD grew 3.8% year-on-year, driven by personal consumption, government spending, and investment.

New manufacturing orders picked up pace in September, rebounding from a near flat performance in August, despite another decline in export sales. Companies reported that increased business investment and new product launches helped strengthen order books.

Production volumes, however, remained unchanged. Firms cited subdued demand and reduced backlogs of work as challenges. Finished goods inventories fell at the fastest rate since September 2010, suggesting that many new orders were met from existing stock.

Employment in the sector continued to rise, with September marking the tenth consecutive month of growth. Some manufacturers highlighted difficulties in finding suitably skilled candidates for open roles.

Input costs increased due to higher raw material and labour expenses, while output price growth eased in a competitive market. Business confidence stayed positive, with nearly half of respondents expecting output to rise in the coming year.

​

AIB Chief Economist David McNamara noted: “Manufacturers linked business optimism to hopes of an improvement in the global economy and a rise in customer demand.”