The Irish manufacturing sector continued to expand in March, although the pace of expansion moderated.
The latest NCB purchasing managers' index shows a reading of 55.7 compared to a figure of 56.7 in February. Any figure above 50 signals growth in the sector.
NCB said that output and new orders rose sharply last month, while increased workloads led to an acceleration in the rate of jobs growth.
However, inflationary pressures rose further, with record rises in input costs and output prices as oil prices soared.
NCB said that higher workloads led manufacturing companies to increase employment at the fastest pace since June 2000. Jobs growth has now been recorded for four months in a row.
Output rose for the 13th month in a row with around 33% of companies surveyed reporting increased production as new orders expanded.
NCB said that firms won a greater amount of new business again last month, with the rate of growth steeper than in previous months. New export orders increased at a slightly faster pace than overall new business, with better demand from the European market reported.
However, the rise in overall new orders was weaker than that seen in the previous month, which enabled firms to deplete backlogs of work for the first time since December.
'It seems like an insignificant fact in light of the banking sector issues, but if it weren't for the exporting sector the economy would be in far worse shape,' commented NCB's chief economist Brian Devine.
