Activity in the manufacturing sector improved for the eighth successive month in October, the latest figures show.
The NCB manufacturing purchasers managers index rose to 52.1 last month.
This compares favourably with the readings of 51.8 and 50.9 seen in the two preceding months. A figure over 50 signals growth in the sector, while a figure under 50 signals contraction.
NCB noted a ''solid'' expansion in manufacturing output in October.
Production rose for the sixth month in a row and the latest increase was the fastest since June. New business also expanded at a faster pace last month, with new product launches and higher new export orders boosting growth.
New business from overseas also increased modestly.
Employment levels rose for the eighth month in a row as firms reacted to increased workloads and expectations of further growth of new orders in the coming months.
But the rate of cost inflation remained ''substantial'' due to higher energy and raw material costs. NCB said that companies passed on some of the increase in input costs to their clients, but strong competition meant that the rate of inflation in output prices was only slight.
NCB's chief economist Philip O'Sullivan said that the latest index shows a continuation of the recent positive trends, which bodes well for Irish firms in the manufacturing sector.
He noted a ''welcome'' pickup in new export orders, which returned to growth after falling into negative territory for the first time in seven months in September.
''One headwind for manufacturing firms is input prices, which have been increased on the back of higher energy and raw material costs. Firms had some success in passing on a portion f these increased input costs through higher output prices in October,'' he added.
