Business conditions in the manufacturing sector improved in September for the 13th consecutive month. However, the growth was at a slower rate than the previous month, according to the latest Purchasing Managers Index from NCB Stockbrokers.
The seasonally adjusted PMI - an indicator designed to provide a measure of the economic health of the manufacturing sector - stood at 52.6 in September, down from August reading of 54.7. Any reading above 50 represents growth.
It was the second successive monthly easing in the overall rate of improvement, NCB said.
'While the survey shows manufacturing expanded for the 13th month in a row, the rate of expansion slowed with respondents citing weaker growth in export sales as one of the significant reasons,' commented Dermot O'Brien, Chief Economist at NCB.
'Nevertheless, modest growth in employment in the sector continues,' he added.
Purchasing managers reported that improved business conditions continued to be driven by rising levels of new business. However, despite remaining solid, the rate of growth of new orders eased sharply in September compared to August.
Firms blamed the slower growth of new orders to strong competition in the domestic markets and to weaker sales growth in key export markets, especially in the US.
Rising oil prices and suppy-side bottlenecks pushed up the price of goods in September, the index shows. Although firms reported a modest rise in the average prices charged for their finished goods during the month, the extent of the increase in input costs meant that gross margins continued to be squeezed.
