Irish manufacturing activity expanded for the 17th successive month in October and at a pace only just shy of a 15-year high hit in August, a survey showed on Monday.

The government expects the economy to grow almost 5 per cent this year - far more than much of the struggling euro zone - boosted by strong exports.

The Investec Manufacturing Purchasing Managers' Index increased to 56.6 in October from 55.7 in September, but remained below its 15-year high of 57.3 in August.

A reading of over 50 indicates growth in the sector.

“The generally positive trends outlined above are particularly welcome in light of the more unsettled global backdrop that we have seen in recent times”, said Investec Ireland chief economist Philip O’Sullivan.

The improvement on September was “chiefly attributed to a combination of inventory building and resilient client demand,” he said.

The sub-index measuring stocks of purchases came in at 55.4, the highest reading since the survey began in 1998.

New orders, boosted by the strength of sterling, have expanded in each of the past 16 months, the survey’s authors said.

Manufacturing accounts for about a quarter of Irish gross domestic product, according to World Bank figures.

Reuters