Key Takeaways
- Irish manufacturing PMI rose to 54.9 in April 2026, the strongest since May 2022.
- Supply chain disruptions worsened, with 23% of firms reporting longer delivery times.
- Export demand from the UK and eurozone surged, despite the weakest business optimism since March 2024.
Irish manufacturing activity accelerated in April 2026, with the Purchasing Managers’ Index (PMI) climbing to 54.9—the highest level in nearly four years. Data released by AIB and S&P Global showed production expansion sustained for a sixth month, driven by strong export demand from key markets including the UK and eurozone. However, supply chain challenges intensified, pressing costs higher amid geopolitical tensions linked to the Middle East conflict.
Manufacturing Growth Strengthens Despite Supply Chain Strains
The Irish manufacturing sector displayed notable momentum in April, as new orders increased at the fastest pace recorded in one year. Export sales surged to their highest since August 2021, fueled by rising demand from major European economies. Interviewed companies linked part of this surge to advance buying and stockpiling ahead of expected supply disruptions and price hikes stemming from ongoing geopolitical issues.
Employment growth remained robust, matching the strongest rates last seen in June 2022, bolstered by firms’ long-term expansion strategies and production capacity upgrades. Meanwhile, backlogs of work increased for the second straight month, marking the first consecutive growth in four years. Nevertheless, supply chains grew more strained: 23% of surveyed manufacturers reported longer supplier delivery times—the largest proportion since October 2022—largely due to fuel protests and disruptions in international shipping routes.
Input costs escalated sharply, seeing their fastest rise since September 2022. Over half (55%) of respondents faced higher purchase prices, driven by rising raw material costs, shipping fees, and fuel surcharges. This cost pressure triggered the fastest inflation at the factory gate in over three years, compelling many manufacturers to pass along price increases to customers. Purchasing activity also surged to a four-year high as firms stocked safety inventories and prepared for potential further supply interruptions.
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Business sentiment weakened considerably, dropping to its lowest point since March 2024. Approximately 38% of manufacturers forecast increased output over the coming year, while 13% anticipated contraction, reflecting concerns over the Middle East conflict’s enduring impact on supply chains and input costs.
David McNamara, Chief Economist at AIB, emphasized Ireland’s manufacturing PMI outperformed the flash readings for the eurozone (52.2), the United States (54.0), and the United Kingdom (53.6), underscoring the sector’s relative strength amid global uncertainties. The data underpinning these findings were collected between April 9 and April 23, 2026.
This latest report highlights Ireland’s manufacturing sector as a critical engine for national economic growth, even as mounting external risks temper business confidence. Policymakers and investors will monitor how ongoing disruptions evolve and how companies manage escalating cost pressures in the months ahead.
Manufacturing: Market Outlook
In April 2026, Irish manufacturing saw the PMI hit 54.9, marking its strongest performance since May 2022. Despite intensified supply chain disruptions that extended delivery times for nearly a quarter of firms and drove input costs to their highest inflation rate in over three years, the sector’s output and exports grew markedly. Export demand from the UK and eurozone boosted production, although business optimism decreased to its lowest level in over two years.
As companies balance accelerating manufacturing output against ongoing cost pressures and geopolitical uncertainty, the sector remains a key focus for investors and economic strategists. Continued vigilance on supply chain dynamics and inflation trends will be vital for sustaining growth momentum going forward.
