The AIB Ireland Manufacturing PMI rose to 55.4 in August 2026 from 55.1 in July, its highest reading in three months. New orders expanded at their fastest pace in nearly four and a half years, helping output increase for a tenth consecutive month and at its strongest rate since April 2025. Employment also grew for a ninth straight month, although the pace was slower than July’s multi-year high. Purchasing activity remained solid and manufacturers continued adding inventories as supply-chain delays persisted. Export demand stayed subdued because of the Middle East conflict, while transportation delays and capacity constraints lengthened supplier lead times and increased backlogs. Input cost inflation accelerated on higher energy and raw material prices, but output price inflation eased to a five-month low. Business confidence climbed to its highest level since January, with around half of manufacturers expecting output to increase over the next year.