The Irish manufacturing sector maintained a positive trajectory in December 2025, adding jobs for the 13th consecutive month, according to the latest AIB Ireland Manufacturing PMI survey. The index came in at 52.2, down slightly from November but comfortably above the 50.0 neutral threshold, signalling ongoing expansion across output, new work, and employment.

Recruitment remained a highlight, with manufacturers increasing staff to deliver new projects and support long-term capacity expansion plans. The growth in workforce contributed to a reduction in backlogs across the sector, improving operational efficiency.

“Output saw robust growth in December, with respondents citing stronger order books. This was also reflected in a continued rise in new orders, albeit export orders fell marginally,” said David McNamara, AIB chief economist.

While the sector sustained momentum, new order growth eased slightly compared to November, reflecting softer export demand. Purchasing activity continued to expand, though at a slower pace, and firms reported cost pressures driven by rising raw material prices. Despite this, output price inflation slowed to its weakest level since May 2024, suggesting manufacturers are absorbing much of the increase rather than passing it fully to customers.

Business sentiment remained upbeat, with 42 percent of firms forecasting increased activity in the year ahead, while only six percent anticipate reductions. Optimism was linked to expected improvements in export sales and a broader positive assessment of future activity levels.

The data also highlights Ireland’s manufacturing sector outperforming early estimated PMI readings for the eurozone, UK, and US, which recorded 49.2, 51.2, and 51.8 respectively, underlining the resilience of domestic industrial performance amid global economic uncertainty.

See the full details on Ireland’s manufacturing outlook and workforce trends.

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