The AIB Ireland Manufacturing PMI fell to 50.9 in October 2025 from 51.8 in September, signaling the weakest improvement in ten months. Output stagnated as softer demand and lower backlogs curbed production, while new business rose only marginally amid a sharper drop in export sales to Europe. Employment growth persisted for the eleventh month but eased as firms faced skill shortages. Purchasing activity increased slightly, though inventory reductions reflected efforts to improve cash flow. On prices, input cost inflation slowed to a 17-month low, and output price gains were the softest since May 2024 amid lower raw material costs and rising competition. Supplier delivery times lengthened further due to transport delays. Despite softer sentiment, manufacturers remained optimistic, with 45% expecting higher output over the year ahead, supported by hopes of stronger global demand and new market opportunities.