Manufacturing index shows economic recovery strengthening – Harris

Minister of State at the Department of Finance and Fine Gael TD for Wicklow-East Carlow, Simon Harris, said that the Purchasing Managers’ Index for Ireland released today (Thursday), highlights that Ireland’s economic recovery is strengthening. Minister Harris was speaking after Investec and Markit Economics released the Purchasing Managers’ Index on Manufacturing and Services in July, showing the highest reading for Ireland since September 2006, just before the economic crash.

“The Purchasing Managers’ Index for Ireland is extremely positive this month. This is the key indicator of the health of the manufacturing sector and so it is an excellent marker of the economic recovery currently underway here.

“The figures released today by Investec and Markit Economics show an increase in Ireland’s Purchasing Managers’ Index from 63.3 in June to 63.4 in July. In July 2014 the reading was 61.3 so this shows the progression of the Irish economic recovery over the last year. Crucially, today’s reading is the highest since September 2006.

“New orders also increased to 63.8 in July from 60.8 in June. This is a great sign for a small export lead economy like Ireland. Our economic recovery is based on the lean export led model followed the last time Fine Gael were in Government between 1994 and 1997. Recent CSO data shows that exports were strong in the opening quarter of this year, growing by 14.3% year-on-year. Under Fianna Fáil’s watch, export job growth had fallen by 90% in 2007, just before the economic crash. Depending on a housing bubble to grow an economy was unsustainable and irresponsible. Fine Gael in Government will ensure that we never go back to that kind of boom and bust economics again.

“The economic recovery is continuing apace but it is still fragile and we must do all we can to protect it and ensure that everyone can feel the benefits.

“The upcoming Budget presents a chance to do this and to continue to put a little back in people’s pockets. It is intended to further reduce the USC burden on the lowest paid, the unfair tax inflicted on the people by Fianna Fáil at the height of their economic crisis. With the coming Budget, this Government will have removed over 500,000 low paid people from the USC.

“It is crucial that everyone can feel the benefits of the economic recovery. We will continue to reduce the burden of tax on work so that hard pressed families will see an increase in their take home pay and continue to play their part in their local economic recovery. Fine Gael has a sustainable plan for continued economic growth and our policies will ensure a more secure and prosperous future for all.”