Irish manufacturers signalled a solid improvement in business conditions in March, according to the latest NCB Purchasing Managers' index.
The seasonally adjusted barometer of the manufacturing sector remained broadly unchanged as it posted 52.6, from February's 52.4.
Dermot O'Brien, NCB's chief economist, said the marginal improvement appears to have reflected less weakness in export orders.
"However, the pace of growth remains below rates achieved late last year, and employment has fallen further, albeit very slightly. Growth in the economy at large continues to rely more on domestic rather than external demand," he said.
Operating conditions have now improved in every month since September 2003, with the latest expansion sustained by robust growth of output and new orders.
Employment declined for the second successive month in March although the fall was marginal and was largely down to staff leaving and not being immediately replaced rather than redundancies.