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Brexit vote 'damaging factories in Republicof Ireland'

Published 03/08/2016

The Brexit vote has hit the Republic's manufacturing sector, with new business stagnating and production slowing for the first time in three years. File image
The Brexit vote has hit the Republic's manufacturing sector, with new business stagnating and production slowing for the first time in three years. File image

The Brexit vote has hit the Republic's manufacturing sector, with new business stagnating and production slowing for the first time in three years.

Signs of falling demand in the sector come as the Republic's biggest business body said exporters faced a currency crisis due to a weakening in sterling caused by the referendum result.

Factory activity has barely remained in growth territory, as the rate of production softened slightly for the first time since May 2013, according to a survey.

The findings from the so-called Manufacturing PMI (Purchasing Managers' Index) is the clearest evidence yet that the Brexit vote has had an impact on the Irish economy.

Philip O'Sullivan, economist with specialist bank Investec, called the findings disappointing, but not overly surprising.

"While we draw a modicum of reassurance from the relatively modest declines in both new orders and new export orders, our sense is that conditions in the Irish manufacturing sector are likely to get worse before they get better."

Belfast Telegraph

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