Irish manufacturing fell further below the NCB purchasing managers' index (PMI) 50-point threshold in February due to falling exports.
The headline index slumped for the fifth successive month to 48.3 from 48.8 in December, according to the index, published today. A PMI reading below 50 indicates negative growth. This is its lowest level since December 2001.
But manufacturers said the rate of slowdown in the sector had eased compared with January. New foreign businesses declined for the seventh straight month.
Output was scaled back for the second month in a row as manufacturers adjusted production schedules with weaker order-book volumes.
As a result purchasing activity in February showed a decline, the fastest rate of decline since November 2001.
New orders performed poorly as the amount of new business placed with Irish manufacturing firms declined slightly for the fifth successive month. However, at 48.2, the rate New Orders Index eased marginally from January's 47.9 rate.
Input costs in February were 58.9 compared with 59.3 the previous month. When seasonal factors are taken into account, input costs rose for the 11th month in a row, mainly due to higher oil prices and shortages in certain raw materials, particularly steel.