Irish manufacturing posted another month of modest growth in September but continued weakening demand for Irish goods abroad meant employment in the sector declined, according to NCB Stockbrokers.
NCB's purchasing managers' index for the manufacturing sector in September was 51.4, compared with 51.3 in August. An index above 50 indicates a level of growth in the sector compared with the previous month and an index below 50 means the sector has contracted.
While September's index represented the eighth month in a row of growth in the manufacturing sector, the rate of growth has been lower in August and September than the previous two months. June's index stood at 54.5 while July's was 53.6.
NCB's senior economist Mr Eunan King said September's index represented a stabilisation in growth levels after two months of decelerating growth. "The export sector fell further in a weak international environment, but domestic demand was still growing," he said.
"The lengthening of delivery times and the further fall in inventories suggests any demand recovery may be strongly reflected in activity."
The level of export orders declined for the second month with the index at 48.4, up from 47.9 in August.
The weaker international demand for Irish goods was linked by the majority of panel firms to global economic uncertainty.
The employment index also dipped below 50, at 49.2, the first time since April that manufacturing employment decreased in the State.
NCB's survey noted that many firms surveyed said lower levels of employment "reflected the non-replacement of leavers". However, they also noted a number of panel firms made redundancies due to economic uncertainty.
