The Irish manufacturing sector declined further last month but the rate of contraction eased marginally, according to the latest Purchasing Managers' Index.

The PMI, compiled by NCB Stockbrokers, climbed to 48.2 in April from 47.4 in March - the seventh successive month it has languished beneath the 50 point no-change mark.

NCB attributed the downturn to weaker output levels and order books.

Respondent firms said loss of international business was caused by the economic slowdown worldwide while the rising strength of the euro weakened exports to the US.

Manufacturing employment fell for the eighth successive month. Companies reduced capacity by not replacing staff who left their jobs.

"The April manufacturing PMI shows only a marginal let-up from the softness of the previous few months," said Mr Dermot O'Brien, NCB chief economist.

"The export sector continues to be pressurised, and orders and output are still declining.

"There was, however, some moderation in the pace of input cost inflation as oil prices eased and the euro firmed," he added.

"Overall, the picture is not encouraging but we need a more post-war perspective than is available in this data to make a firm judgment," he said.

Input costs climbed sharply, in line with previous trends. The rate of inflation was nevertheless the slowest since May 2002 as fuel and energy price rises moderated and the strong euro pushed the import prices down.

Respondents reduced raw material purchases for the ninth successive month.

Slow buying activity enabled businesses to run down existing purchase inventories, boosting stock management efficiencies.