Manufacturing activity in November grew at its slowest rate in 15 months, according to the latest NCB Purchasing Managers' Index.
The Index recorded 51.6 in November, down from 53.2 the previous month and just above the 50 mark which delineates growth from contraction.
NCB said the headline index has eased in four of the past five months and the latest reading was the lowest since August 2005.
The report said input prices paid by Irish manufacturers rose at a strong rate in November.
"Firms reported increased prices for energy, plastics and raw materials. However, the rate of cost inflation eased and was the weakest for a year," it noted.
Employment in the sector increased marginally in November as it has in each month since April.
"Of those firms that hired extra staff in November, a number mentioned efforts to expand production capacity," it said.
Chief economist at NCB Dermot O'Brien said: "Growth in manufacturing activity continued to decelerate in November, with the pace of growth at its slowest since August 2005."
He said: "A fall in export orders in the month is likely to have been an important cause of the deterioration, given the external orientation of Irish manufacturing.
"For the moment, however, employment in the sector continues to expand."