Irish, Japan Manufacturing Sectors Expand Amid Economic Uncertainty

Ireland's manufacturing sector experienced its fastest growth in over three years in June, with the AIB Manufacturing PMI rising to 53.7, marking the sixth consecutive month of expansion and the highest reading since May 2022. This growth was driven by strong output, new orders, and a sharp rise in employment, supported by solid domestic demand despite continued weakness in UK export orders and global economic uncertainties including US tariffs. Business confidence in Ireland also improved to a five-month high, with firms optimistic about future production increases and investment plans. In contrast, Japan's manufacturing sector expanded for the first time in 13 months, with the PMI rising slightly above the growth threshold due to an uptick in output and employment; however, demand remained weak as new orders continued to decline amid uncertainty over US tariffs, particularly impacting semiconductor and automotive sectors. Japanese manufacturers expressed cautious optimism about future demand, though sustained recovery depends on improvements in both domestic and export sales. Both countries face challenges from global trade uncertainties, but Ireland shows stronger momentum in manufacturing growth and employment compared to Japan.