The country's manufacturing sector saw a slight downturn in November, with fears of a further contraction as new orders have weakened.

The latest AIB Ireland Manufacturing PMI fell to 49.9 from 51.5 in October.

A PMI reading above 50 indicates growth, while below that level signals a contraction.

This marks the third time in six months that the index has fallen below 50, highlighting ongoing challenges in the sector.

The decline was driven by a sharp drop in new orders, the steepest since June, with manufacturers citing fragile consumer demand and subdued global economic conditions.

It also resulted in a drop in the numbers being hired for the third month in-a-row.

David McNamara, AIB's chief economist said: "While the headline index fell in November, output rose in the month for the second consecutive month and at the fastest pace since February.

"Some respondents noted inventory rebuilding had helped to underpin the rise in production
volumes.

"However, as mentioned previously, new orders fell back into contractionary territory, after expanding for the first time since February last month, with firms attributing the weakness to fragile consumer demand and subdued activity from the main export markets.

"Against the backdrop of a muted demand environment, hiring declined for the third month in-a-row."

The rate of job reduction was the quickest since June 2023. Companies often cited non-replacement of voluntary leavers due to sufficient capacity.

Input cost inflation eased to a five-month low, yet output charge inflation accelerated, reflecting efforts to pass on higher costs to customers.

"The rate of inflation for input costs eased for the second straight month. However, output charge inflation accelerated to its second-highest reading since March 2023," said Mr McNamara.

AIB said, with 46% of manufacturers expect output growth over the next 12 months.

But some firms also voiced concerns about competitive pressures and the economic backdrop