Activity in the manufacturing sector deteriorated further in January, although at a slightly slower pace than in December.
The latest NCB purchasing managers' index fell to 38.9 last month, with output, new orders and job levels all falling substantially. The fall was the third sharpest since the series started in 1998. The index had stood at 37.9 in December.
The index gives a measure of the health of the manufacturing industry. Any figure over 50 signals growth while a figure below 50 points to contraction.
The PMI shows that output fell in January, mainly due to a fall in new orders. It says that the wider economic downturn led to a further sharp reduction in new business, while poor global economic conditions were blamed for the latest fall in new export orders.
The strength of the euro compared to sterling also led to less new business from the UK, the index noted.
36% of firms surveyed said they cut jobs last month compared to 9% who said they added new positions.
On a brighter note for firms, input cost deflation accelerated to a new survey record as it extended its period of falling prices to three months.
