Ireland’s manufacturing sector has delivered another impressive result, with the AIB Manufacturing Purchasing Managers’ Index rising to 55.5 in September from 55.4 in August, according to data reported by RTÉ. Output grew at its fastest pace in four and a half years, new orders rose for a 21st consecutive month, and the reading marks the second-strongest improvement in business conditions since May 2022.

Three developments within the September data merit close attention from C-suite leaders across manufacturing Ireland: the 21st consecutive month of new order expansion, signalling structural demand rather than a cyclical bounce; export orders reaching their highest level since June; and the persistence of supply chain and cost pressures testing margin management. Together, they confirm a sector sustaining exceptional momentum with clear operational priorities for leaders.

The production data are exceptional. AIB chief economist David McNamara confirmed that output rose rapidly in September, reaching its highest level since March 2022 and underpinned by continued robust order books. New orders rose for the 21st consecutive month, with purchasing activity growing at its quickest pace in four months. Export orders reached their highest level since June, reflecting stronger inflows from major developed markets.

Supply chain pressures intensified in September. Supplier delivery times lengthened due to international shipping delays, contributing to backlogs of work steadily rising for the third consecutive month. Input cost inflation reached its highest level since June, with 38% of firms reporting higher purchasing costs linked to energy, fuel, and transport prices. Robust demand enabled many firms to raise factory gate prices to a three-month high.

Business confidence eased from its August high but remained net positive, with 38% of manufacturers predicting output growth over the coming year against 11% forecasting a decline. Ireland’s pharmaceutical manufacturing sector, one of the most productive per capita in the world, helps anchor this underlying resilience. The PMI of 55.5 comfortably outpaces the Eurozone’s 52.7 and the UK’s 52.0, confirming Ireland’s clear European manufacturing leadership.

Three priorities stand out for Irish manufacturing leaders. First, embed systematic cost management to navigate sustained energy, fuel, and transport volatility while protecting operational margins. Second, invest in industrial excellence across supply chain resilience, including supplier diversification and digital logistics monitoring, to reduce exposure to international shipping disruptions. Third, capitalise on sustained order momentum by scaling production capacity to convert growing demand fully into revenue.

The September 2026 AIB PMI confirms three consecutive months with readings at or above 55, a level of sustained performance that is rare in any global manufacturing context. For C-suite leaders across Ireland’s pharmaceutical, food production, and engineering sectors, output at multi-year highs, robust export demand, and solid employment growth provide a compelling foundation for continued capital investment in the quarters ahead.