The country's manufacturing sector gained momentum over the summer with sharp increases in new orders and output recorded in August. 

The Investec Manufacturing Purchasing Managers' Index rose to 57.5 from 56.3 in July to extend a run above the 50 mark separating growth from contraction that stretches back 63 months to June 2013.

The Irish economy has been the best performing in the European Union every year since then.

The sub-index measuring new order growth rose to 60.3 from 59.7 in July, which is the fastest rate year-to-date. 

Investec said that respondents reported stronger demand in both domestic and export markets. New orders have now increased in each of the past 25 months. 

According to respondents, the growth in new orders was the main reason for a sharp increase in production.

"The rate of expansion in New Export Orders was marked and the highest in three months with panellists citing the UK, the euro zone and the Middle East as sources of new work," Investec Ireland's chief economist Philip O'Sullivan said.

"Margins remain under some pressure however with input costs showing another sharp increase in August, albeit the latest increase was the slowest in ten months," he added.