The pace of growth in manufacturing activity rose slightly in April to its second highest level in 11 years, as export growth offered some hope for the Irish economy.
The NCB Purchasing Managers' Index, which measures Irish manufacturing activity, rose to 56.0 in April from 55.7 in March, staying above the 50 mark separating growth from contraction for the seventh month.
Irish exports rose to a three-year high in February, data released last week showed. These could be affected by a stronger euro, but today's figures showed that new export orders in the manufacturing industry remained strong, falling just a touch to 59 from 59.2 in March.
'The manufacturing sector is largely driven by exports and the euro's continued rise against sterling and dollar will be of concern, but to date demand is outweighing this impact,' Brian Devine, economist at NCB Stockbrokers, said.
However, companies are facing rising cost pressures and despite falling back from a record high in March, the sub-index measuring input price rises remained elevated in April. Firms cited higher oil-related and raw material costs.
In response, companies increased their output prices for the fourth month in a row.
New business rose for the seventh month in a year and at a sharp pace as demand improved, NCB noted. New export orders rose considerably, with companies saying that the UK had been a key source of growth.
The survey showed that employment rose at a solid pace that was only a little lower that March's near 11 year high.
