Figures released this morning show that activity in the manufacturing sector continued to grow strongly in July.
The NCB Purchasing Managers' Index rose to 55.2 from 53.7 in June. The July figure was the best since May 2000. Any figure above 50 signals growth, and the index has been above that level since September.
NCB economist Eunan King said the figures confirmed that a 'significant upturn' was underway, and suggested that strong employment growth in the first part of the year had continued into the summer.
NCB said the latest improvement was underpinned by strong growth in new orders, which rose for the 11th consecutive month. Companies reported that demand strengthened in domestic and international markets. Employment levels grew at the fastest rate since the beginning of 2001.
But the survey suggested that margins came under increased pressure, as higher oil and steel prices were not passed on fully to customers.
