Irish manufacturing sector stagnant - survey

The downturn in the Irish manufacturing sector seen over recent months is proving to be persistent with few signs of an early…

The downturn in the Irish manufacturing sector seen over recent months is proving to be persistent with few signs of an early recovery, according to the latest industrial survey.

April's NCB survey of the Irish manufacturing economy continued to suggest modest contraction, although the rate of decline eased somewhat.

The headline Purchasing Managers' Index rose from 47.4 in March, to 48.2 in April but remained below the critical no-change mark of 50 for the seventh consecutive month.

Commenting on the survey, Mr Dermot O'Brien, chief economist at NCB, said: "Overall the picture is not encouraging but we need more of a post-war perspective than is available in this data to make a firm judgment," he said.

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Firms blamed the loss of exports to the global economic slowdown. Exports to the United States were noted as being particularly weak, impeded by the recent strength of the euro.

Manufacturing employment declined for the eighth successive month in April. Firms were again reported to have reduced staff numbers by not filling vacancies left by departing employees.

The Purchasing Managers' Index is a seasonally adjusted composite index designed to provide an overall view of the manufacturing economy.