There has been a sharp drop in the number of indigenous manufacturing firms which expect to create additional jobs next year, a survey carried out by the Irish Small and Medium Enterprises body has shown. The survey found there had been a decrease of almost 25 per cent in the number of firms reporting increases in the value of export sales.

There had been a 15.2 per cent decline in the number of firms which expected to generate additional jobs compared to the same period last year. There was a 15 per cent decrease in the number of firms committed to increased investment levels in 1998 compared to this year.

"The sector is still showing significant growth but not as much as last year," the organisation said.

It said the results suggested that this was the beginning of a slowdown in the growth of the sector "which is a logical consequence of sustained expansion in recent years and/or bottlenecks in the system preventing the sector from expanding".