Activity in the Irish manufacturing industry rose in October as new orders increased for the first time since May.
The NCB manufacturing purchasing managers' index rose to 50.1 in October from September's reading of 47.3. The October figure marked the first improvement in operating conditions since May.
The index showed that new orders returned to growth last month after four months of declines in a row. Companies also reported some signs of improving market conditions.
However, firms said that new export orders decreased in October - the second month of declines in a row. NCB says that uncertainty surrounding the euro zone had a negative impact on new business from abroad, but favourable exchange rates helped stimulate demand.
Staffing levels fell again in October, a repeat of the situation in five of the past six months. NCB said that the rate of job shedding was ''solid'' and a number of companies said they had not replaced people who had left their jobs in the last month.
Today's survey also showed that input costs rose in October and at a faster pace than in the previous month due to higher raw material prices. Companies once again lowered their output charges amid intense competitive pressures and in efforts to stimulate demand.
NCB's chief economist Brian Devine said it is surprising that the index expanded, given the global backdrop and the fact that export orders actually declined.
'Ireland is not going to be able to buck the trend should advanced economies slow, but the fact that the US is looking stronger than the euro area should be a relative benefit to Ireland,'' he added.
