Ireland's manufacturing sector recorded a sharp contraction in activity in October as the Purchasing Managers' Index (PMI) fell to 48.8, the lowest since December 2001, according to data published today.
A reduction in orders and lower output growth pushed the index compiled by NCB Stockbrokers below the critical 50 "no change" level for the first time since January, and to its lowest level since last year, NCB said.
"The deterioration in the manufacturing sector in October reflects largely a weakening of demand conditions in the US and Europe in recent weeks, though domestic demand is also stated as soft," NCB senior economist Mr Eunan King said in a statement.
"There have been further cutbacks in stocks and employment as a result. Overall, not an encouraging report," he said.
The PMI index has kept a steady downward trend since its recent peak of 54.5 in June, NCB said.
It said the latest fall below the 50 level was heralded by the first drop in new orders since last December.