Figures released this morning show that manufacturing activity grew in January for the 17th consecutive month.
The latest Purchasing Managers' Index, from NCB Stockbrokers, posted a reading of 52.9 in January, down slightly from the 53.1 recorded in December. Any number over 50 indicates growth.
'While the January PMI shows a broad stabilisation in the overall pace of activity growth in manufacturing, a number of its components suggest a more vigorous underlying picture,' commented NCB's chief economist Dermot O'Brien.
'Growth in output and new orders speeded up in January, with export orders accelerating sharply, while the reading on employment was close to the best seen in the past four years,' he added.
NCB said the latest improvement in manufacturing activity was underpinned by a further increase in the volume of new orders placed with Irish manufacturers. New export orders rose for the third month in a row, and at the sharpest pace since August 2004.
However, manufacturers also pointed to a further strong increase in average input costs last month, which they linked to the rising price of a range of raw materials, including steel and plastic products.
