The Irish manufacturing sector is continuing to show signs of a tentative recovery, according to the latest NCB Purchasing Managers Index, published today.
The PMI reported further growth in manufacturing in April with the pace of expansion accelerating for the second successive month, according to the survey.
However, despite hitting a thirteen-month high of 51.4 in April, the NCB PMI remained only slightly above the critical no change mark of 50.0 that divides contraction and expansion.
Commenting on the survey, Mr Eunan King, senior economist at NCB said "The report indicates a consolidation in the growth of manufacturing in April. Delivery times lengthened for the first time in a year. Overall it’s steady as she goes."
Of the five components of the PMI, output and new orders (which tend to react more quickly to changes in the economy) exerted the strongest positive influences on the headline figure.
Overall order books rose for the fourth successive month, with rising demand linked by the majority of firms to improved business conditions in Ireland, as well as increased sales abroad (in particular the UK).
Nevertheless, the rate of growth of new orders remained only modest and was marginally weaker than that seen in March.
Meanwhile, output of manufactured goods was also stepped up for the fourth successive month, and at the fastest rate since July 2001, as firms generally responded to fuller order books by raising production levels further.
Employment contracted for the tenth consecutive month in April. Firms reported cutting staff levels during the month citing to the need to reduce costs and improve productivity. But the rate of decline of employment was only modest and the slowest in the current downturn in staff recruitment.