Irish manufacturing output fell in September amid the fastest drop in export sales for five months.
It was the first fall in output since June, the AIB Ireland Manufacturing Purchasing Managers Index said.
The PMI also pointed to strengthening cost pressures faced by those producing goods here.
This it said was mostly driven by rising prices for raw materials and led to the strongest rate of factory gate price inflation since February 2023.
The PMI for the month came in at 49.4 in September, down from 50.4 in August and below the neutral 50.0 threshold for the first time in three months.
"Activity has now fallen in six of the nine months so far in 2024," said David McNamara, AIB chief economist.
"The deterioration in the Irish manufacturing sector was driven by a fall in output, new orders and employment, mirroring a broad-based slowdown in the sector in Europe."
"The Irish manufacturing PMI remains above the flash September readings for the Eurozone and US at 44.8 and 47.0, respectively, but below the UK at 51.5."
Total new work decreased marginally in September, which extended the current period of decline to seven months.
But the overall rate of contraction eased since August.
A lower pipeline of sales and a lack of pressure on business capacity acted to slow down staff recruitment.
"Respondents linked this fall to non-replacement of departing staff as firms right-sized in the current weak environment," Mr McNamara said.
Post-production inventory levels were broadly the same as in August, ending an 11-month period of destocking.
In terms of the outlook, 37% of respondents said they anticipate a rise in their production levels during the year ahead, while only 8% predict a decline.
Overall there was a slightly more upbeat business outlook than in August, but the index remained much weaker than the long-run survey average.
"Despite the subdued trading conditions, Irish manufacturers maintained an overall positive outlook regarding activity over the coming 12 months, with sentiment rising in September," said Mr McNamara.
"Respondents linked this to optimism around an improvement in market conditions and long-term expansion plans."
