Economy

Rising exports to Europe and Asia offsetting sluggish domestic demand - AIB

Bank’s latest PMI shows a sharp downturn in purchasing activity and expressed caution about underlying demand conditions

At 49.5 in January, the PMI was up from 48.9 in December but still slightly below the crucial 50.0 no-change value

Rising exports have offset weakened domestic demand, according to new AIB data, as manufacturers remain optimistic about the year ahead.

The bank’s latest Purchasing Managers' Index (PMI) showed employment also returned to growth in January, but manufacturers continued to report a sharp downturn in purchasing activity and expressed caution about underlying demand.

David McNamara, AIB's chief economist, said key features of the January survey were “a rise in output, export orders and employment, alongside marked ...