The Irish manufacturing sector managed to buck the European trend in March, with companies in the sector recording a solid increase in new orders during the month.
The seasonally adjusted NCB Purchasing Managers Index rose to 51.5 in March from 49.7 in February.
Any figure over 50 signals growth in sector, while a figure under 50 indicates contraction.
The improvement in operating conditions was the first in the past five months.
NCB said the sector finished the first quarter of 2012 on a positive note, with output, new orders and employment rising in March. However, cost inflation accelerated further last month due to high oil prices.
Today's index shows that manufacturing companies recorded a solid increase in new orders while companies also reported growth of new export orders. New business from abroad increased at the sharpest pace since last May.
NCB noted that rising workloads encouraged companies to increase their staffing levels, with the first slight rise in employment the first recorded this year so far.
However, the rate of input cost inflation at manufacturers quickened for the fourth month in a row and was the sharpest since June 2011 amid higher costs of oil and oil-related products.
Output prices continued to fall during the month with competition for new business remaining ''intense''.
NCB's chief economist Brian Devine said that the March result is in contrast t the flash PMIs in the euro zone, which signalled contraction in the euro area.
''The out performance is likely driven by Ireland's greater exposure to the US, which has been performing relatively robustly lately,'' he added.
