Growth in Ireland's manufacturing sector slowed in December as cost pressures intensified, a survey published today showed.
The seasonally adjusted NCB/NTC Purchasing Managers' Index - an indicator of the industry's economic health - slipped to 53.4 from 53.7 in November. A figure above 50.0 represents improvement.
"Manufacturing continues to grow but is not accelerating," said NCB Stockbrokers chief economist Eunan King.
"New orders have shown steady growth over the last three months, and employment continues to rise at a modest pace. Input prices remain firm, and output prices are growing at a still modest rate."
The survey showed the rate of input price inflation was at its highest in 12 months. The rate of increase in average charges also quickened but was well below the equivalent measure for input costs.
Many firms reported that high oil prices drove up the cost of related items such as plastics and fuel.
The rate of growth of total new orders eased slightly from the previous month, but new foreign work expanded at a faster pace than in November, with strong demand from the United Kingdom and Spain.
Rising production requirements spurred a further increase in purchasing among Irish manufacturers. Input buying rose at its sharpest rate for eleven months.
Employment levels increased for the fifth successive month in December although the rate of job creation remained marginal, the survey showed.