The manufacturing sector here recorded modest growth in July for the second month in a row, according to the Investec Purchasing Managers Index.
The index showed that new orders returned to growth following four successive months of decline
The overall index came in at 51 for July - up from 50.3 the previous month. Anything over 50 signals expansion in a sector, while a figure under 50 signals contraction.
Investec said the manufacturing sector was boosted last month by the spell of unusually hot weather and stronger demand from the UK.
Today's survey shows that new export orders also returned to growth in July and Investec noted that the increase was the steepest recorded so far this year.
Employment levels among manufacturing companies surveyed rose for the second month in a row, in response to higher demand. Output also increased for the second month in a row, and the expansion was the fastest since November 2012.
Investec also noted that manufacturers received a little respite on the pricing front, with input prices easing marginally for the second month in a row and output prices up for the second time in three months.
''The increased demand from the UK comes amid improving economic data there and, in that regard, is not surprising,'' commented Investec's chief economist Philip O'Sullivan.
He said that the importance of the UK as an end market to Irish manufacturers is underlined by CSO data showing that it accounts for about 17% of Irish goods exports and is second only to the US.
''In relation to the outlook for the remainder of the year, the key is whether this increased demand can be sustained and replicated across Ireland’s other key trading partners. We would be cautiously optimistic that it will,'' the economist added.
