NCB Stockbrokers' Purchasing Manager's Index rose in June compared with the three year low of May. However, the rate of expansion of manufacturing activity remained subdued.
The PMI index, which gives an overall view of manufacturing conditions, edged up to 50.9 in June after recording a figure of 50.2 in May. Readings above 50 signal growth while below 50 signal contraction.
A pickup in the rate of growth output and a return to growth of new orders were the main factors behind the marginal expansion, NCB said. They added that a further sharp fall in stocks of purchases were the primary cause of the weak rate.
Eunan King, senior economist at NCB, said that the survey indicates that exports are further hit by external conditions but overall orders are still rising, if modestly.
'This concurs with our view that domestic demand is the overriding driving force in the Irish economy,' he added.
The index is based on a survey of 285 manufacturing companies and is conducted in association with the Irish Institute of Purchasing and Materials Management.
