The AIB Ireland Composite PMI Index rose in November, returning to growth after a brief decline, as service activity quickly increased and manufacturing stabilised.

The composite rose in November to 52.3, having declined in October ‘for the first time in nearly a year’ to 49.7. S&P Global said this indicated a modest growth rate that was broadly in line with trends for this year so far.

The AIB Ireland manufacturing purchasing managers’ index came in at 50.0 points in November, up from 48.2 points in October and 49.6 in September and its second highest reading since February.

Expansion in the service sector accelerated, with the AIB Ireland services business activity index rising to 54.2 in November from 52.6 in October. From January to November, the index averages 55.7.

However, this was still the second-lowest figure the index had shown since January, despite activity rising every month since March 2021.

Regarding the composite index, S&P Global credits the faster increase in service activity for driving an overall return to growth, with help from the manufacturing sector as production stabilised.

New business increased in November, but the ‘moderate’ expansion was nonetheless below the long-run average.

Output price inflation fell to a 35-month low, while input price inflation dropped to its lowest rate in 40 months.

‘The Irish November survey data are encouraging on a number of fronts: there was a strengthening in the key activity metrics, all four service sub-sectors registered growth, while inflationary pressures continued to ease’ said AIB Chief Economist Oliver Mangan. ‘Employment growth also picked up in the month, and the level of outstanding work rose again.

‘Firms also remained optimistic about their expectations for business activity over the coming 12 months.’

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