A survey has shown that conditions for manufacturing companies deteriorated significantly in January.
The NCB Purchasing Managers' Index recorded 46.4, down from December's 49.5. The figure has now been below 50 for two months in a row, meaning activity in the sector shrank.
The figure for the employment part of the survey was even lower at 42.5. NCB economist Eunan King said this suggested a 'sharp downward adjustment' in activity.
A breakdown showed that manufacturing production fell in January for the first time in more than four years, while there was a sharp fall in new orders. Some companies noticed a drop in orders for construction-related products in particular.
The costs index rose to 63.8, due to higher food, oil and raw materials costs, but prices charged by firms rose only slightly, with this index falling to 52.2.
