The manufacturing sector in Ireland expanded for the first time in six months last month.
The growth was driven by an uptick in new orders, according to the AIB Manufacturing Purchasing Managers Index.
Overall manufacturing output, which had declined steeply in July, showed signs of stabilisation.
As a result, firms took on the largest number of staff that they have since February, the data shows.
"The headline index rose to 50.8, up from 47 in July and 47.3 in June," said Oliver Mangan, AIB Chief Economist.
"This was the first expansion in Irish manufacturing activity since February and is in marked contrast to the trend elsewhere."
After falling in each of the five previous survey periods, new orders grew in August, with particularly strong growth in new orders for export, ending a 14-month sequence of declines.
"Firms attributed the rebound to better demand conditions," said Mr Mangan.
"The pick-up in new orders saw manufacturing production move very close to stabilisation during August following a number of months of sharp falls."
The rise in employment in the sector was among the fastest over the last year.
"Stocks of finished goods rose too, while inventory levels of inputs were little changed following three months of steep declines," Mr Mangan said.
Optimism about the growth continuing into the future meant confidence levels strengthened to a historically elevated level, the most pronounced in six months.
"It will be interesting to see though, if the expansion in Irish activity in August can be sustained given the ongoing weakness of manufacturing globally," Mr Mangan said.
While output rose, purchasing continued to fall during the month, but at a rate much slower than in July and the weakest in nearly a year.
Discounting of prices continued, albeit at lower rates as raw material and energy costs fell.
"The drop in input costs continued to be passed on in lower factory gate prices, which fell for the fourth month in a row," Mr Mangan added.
