DUBLIN, Oct 1 (Reuters) – Ireland's manufacturing sector expanded at a modest pace again in September, with an acceleration in new orders and continued solid employment ensuring a ninth successive month of growth, a survey showed on Wednesday. The AIB Ireland Manufacturing Purchasing Managers Index (PMI) edged up to 51.8 from 51.6 in August, above the 50.0 threshold that indicates growth, where the index has remained throughout 2025. Ireland's economy as measured by modified domestic demand, or MDD – officials' preferred metric – has grown solidly in recent years and expanded 3.8% year-on-year in the first half of 2025 thanks to strong personal consumption, government spending and investment. New manufacturing orders increased at a quicker pace last month, despite another decline in export sales and having almost flatlined in August, the survey showed. Manufacturers noted that rising business investment and new product launches had bolstered order books. However, production volumes remained unchanged, with firms citing subdued demand and depleted backlogs of work as headwinds. Stocks of finished goods fell at the fastest pace since September 2010, indicating that new orders were fulfilled from existing inventories. With employment growing for the 10th successive month, some manufacturers reported difficulties in finding suitably skilled candidates for vacancies. Input cost inflation accelerated due to higher raw material and labour costs, yet output price growth eased amid intense competition. Business optimism remained strong, with nearly half of those surveyed expecting output to rise in the year ahead. "Manufacturers linked business optimism to hopes of an improvement in the global economy and a rise in customer demand,” said AIB Chief Economist David McNamara. (Reporting by Padraic Halpin; Editing by Hugh Lawson)
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