Conditions in the manufacturing sector continued to deteriorate at a marked pace in June, the latest survey shows. The seasonally adjusted NCB Purchasing Managers Index fell to 44.7 in June - the survey's lowest reading and in line with the April figure.
The June figure was down from a reading of 45.2 in May. The fall was the seventh month of contraction in a row. Output, new orders and employment levels all decreased last month, NCB said.
NCB said that production at factories around the country contracted for the fifth month in a row and was the third sharpest in the ten-year survey history.
New business fell at a marked pace that was only slightly slower than April's survey. New work from abroad continued to fall with the strength of the euro adversely affecting demand, the survey shows.
Reduced workloads also led to the seventh month in a row of falling employment levels in the manufacturing industry. Employee numbers fell at the second-fastest race in the survey's history, NCB said.
Inflationary pressures also hit manufacturers last month with input costs increasing at the sharpest rate for 49 months. Firms reported higher prices for oil, plastics and metals with the cost pressures leading to more increases in manufacturers' prices charged.
'Conditions in the manufacturing sector remained challenging in June and are likely to remain so as new orders continue to contract,' commented NCB's chief economist Eunan King.
'The deterioration in both domestic and external economic conditions coupled with the strength of the euro is adversely affecting demand,' he added.
