Manufacturing growth rate fastest since August

The Irish manufacturing sector continues to strengthen, according to new research published today.

Despite easing in recent months, the latest figures show that the rate of industry growth is now at its fastest since August.

NCB Stockbrokers Purchasing Managers' Index rose to 53.1, up from 51.3, with both output and new orders increased.

Levels of incoming new work at Irish manufacturers have risen for the sixteenth month in a row, with the rate of new business growth up for the second consecutive month. A large volume of new business saw Irish manufacturers increasing production and staffing levels to cope. The employment index increased from 51.5 to 51.9, with the rate of job creation the sharpest since July.

Mr Eunan King, senior economist at NCB, attributed the increase in new orders to strong domestic demand and export orders from the UK and Eastern Europe. Firms believe that new products have helped bolster demand in both domestic and foreign markets.

A rise in the average costs facing Irish manufacturers was recorded in December, which companies attributed to escalating raw material costs and the knock-on effect of higher oil prices.

However, the seasonally adjusted input prices index fell from 68.8 to 66.5, indicating a three-month low in the rate of inflation. Prices charged by firms increased at the fastest rate for seven months but remained below that of increased costs.