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Austerity is looking worse all the time for Ireland, with new manufacturing and retail sales data tanking.The country’s purchasing managers index fell to 48.4 in September from 51.1 in August, according to Reuters. Anything less than 50 indicates contraction.
Retail sales for August 2010 fell, excluding auto sales, year-over-year by 1.4%.
Private sector growth is not filling the gap. With exports from the manufacturing sector being key to that growth, Ireland doesn’t just need just austerity, it needs a decline in the value of the euro.
Without that decline Ireland’s goods will not be more competitive.