New figures today show that manufacturing activity experienced a robust improvement in May.
The latest NCB Purchasing Managers' Index rose to 55.1, its highest reading since July 2004. The index had stood at 54.1 in April. Any figure above 50 signals growth.
The PMI has shown growth in each of the past 33 months and the latest expansion was underpinned by strong rates of growth of both output and new orders.
Dermot O'Brien, chief economist at NCB Stockbrokers, said that conditions in the manufacturing sector strengthened appreciably further in May, with activity growing at its fastest rate since the summer of 2004.
Export orders rose at their fastest pace in over six years, testifying to improving external demand.
'Gratifyingly, employment growth also strengthened significantly, to its fastest rate since before the onset of the international recession in 2001,' the economist said. 16% of firms surveyed said that extra staff had been hired in May.
