Irish manufacturing has outperformed against backdrop of contraction in EU, says Bank of Ireland head of Manufacturing Sector Conor Magee.
“While Irish manufacturing continues to be in good health, there is no escaping the reality that weaker performance within the EU and the wider global economy will impact in the form of weaker demand and lower rates of growth for 2023”
Irish Manufacturing indicators for October 2022, while remaining in expansion territory, continue to reflect the ongoing reality of falling demand, stubborn high inflation and weaker economic forecasts.
Bank of Ireland Industry Pulse for October was 77.7 down from 86 in September and down from 94.5 a year ago. AIB Irish Manufacturing Purchasing Manager’s index (PMI) for the manufacturing sector remained flat at 51.4 bucking the continued downward trend of EU PMI data which came in at a 46.6 (Flash October), a 29-month low. Irish Manufacturing saw a fifth consecutive month of declining orders, driven by falling demand due to persistent high inflation. This drop in demand has triggered both a reduction in order backlogs and volume of raw materials purchases.
EU PMI data, considerably weaker than Ireland, continued its decline in October. Recession signals grow stronger as manufacturing are increasingly concerned about higher inventories and lower than forecasted demand.
In summary, while Irish manufacturing continues to be in good health, there is no escaping the reality that weaker performance within the EU and the wider global economy will impact in the form of weaker demand and lower rates of growth for 2023.
From 60 to zero in 900m seconds – same target, different scales
Not a car spec gone wrong but our mission critical net zero carbon targets! As COP27 takes place in November, it is worthwhile reflecting on our Carbon targets both for Ireland and Global (see charts and note below).
Curiously the number is the same but different by a factor of 1000. Ireland emissions should reduce from 60m tons CO2 equivalent and Global emissions must reduce from 60bn CO2 (also known as Gigatons), both to net zero by 2050.
So easy to remember. While scale of challenge is enormous, much has already been done.
Looking at the Target through a lens of optimism and opportunity, the most recent positive developments include:
There are now over 2,250 companies signed up to Science Based Targets (SBTs) – 1/3 of Global Market Cap.
Companies with SBTs have collectively reduced carbon by 29% since 2015.
450 financial institutions from 45 countries have committed $130tn to back Climate Action.
The economics of renewable energy vs fossils fuels continues to improve. 163 gigawatts added in 2021.
In summary, while the targets remain daunting and challenging, and pace is still too slow, a lot is happening to move the needle. The more we can do in this decade, the higher the down payment will be toward net zero by 2050.
Main image at top: Photo by Jamie O’Sullivan on Unsplash
