New figures show that manufacturing activity grew slightly in May, but employment in the sector fell at the fastest pace in almost four years.
The NCB Purchasing Managers' Index recorded 51.9, compared with 53.3 in April and just ahead of the 50 mark which indicates growth.
NCB chief economist Dermot O'Brien said overall the figures indicated stability in the sector, but he expressed concern about the employment drop. He said this was the second negative jobs reading in three months after almost a year of solid growth.
New order volumes rose, mainly due to the domestic market as new export work fell at the sharpest pace since August 2003. The employment index was 46.7, the weakest since July 2003.
The costs index was 57.9, but the rate of growth eased for the fourth month in a row. Companies reported that metals and timber prices had increased. But the index for prices charged by companies fell sharply to 52.4, with firms suggesting that competition had restricted pricing power.
