NCB index shows sharp rise in manufacturing new orders

IRISH MANUFACTURING continued to build on a strong start to the year, with output and employment growing in February and new orders rising at the sharpest pace in 11 years.

The NCB manufacturing Purchasing Managers’ Index, which is designed to measure of the health of the manufacturing industry, rose to 56.7 last month, the fifth consecutive monthly rise.

The increase from 55.8 in January signalled a “marked improvement” in operating conditions, the survey said. “Moreover, conditions in the sector strengthened to the greatest extent since January 2000,” it said.

Seasonally adjusted output grew to 60.9 from 59 a month earlier. The new orders index rose to 59.2 in February, up from 58.8 in January. Exports continued to drive the sector, with the index for new export orders rising at the second-fastest rate on record to 61.6.

The rate of job creation in the sector was the highest since July 2006, as increased workloads pushed businesses to take on more staff.

However, substantial input cost inflation continued for the second month in a row, and was at a 2½-year high. More firms increased output prices as a result, leading to inflation accelerating at the steepest pace in four years.

Meanwhile, the Markit Eurozone Manufacturing Purchasing Managers Index rose to 59.0 in February from 57.3 in January, its highest reading since June 2000.

– (Additional reporting: Reuters)