Business conditions in Ireland's manufacturing sector improved at their fastest rate for nearly two years in May, a survey showed today.
The seasonally adjusted NCB/NTC Purchasing Managers' Index, an indicator of the industry's health, rose to 55.1 in May from 54.1 the previous month to reach its highest level since July 2004 when it hit 55.2. A figure above 50 represents an improvement in conditions.
"Another sharp acceleration in export orders was a significant influence - they rose at their fastest pace in more than six years, testifying to improving external demand," said Dermot O'Brien, chief economist at NCB Stockbrokers.
"Gratifyingly, employment growth also strengthened significantly, to its fastest rate since before the onset of the international recession in 2001."
The export orders index rose last month to 57.0, its highest since December 1999's 59.1, from 53.6 the previous month, with a number of firms commenting on greater demand from the United States.
Overall volumes of new orders grew strongly in the month, with new work increasing at its most rapid pace for two years, up to 56.7 from 55.7 in April.
The employment index jumped to 53.3, marking the strongest growth in jobs since January 2001 when the index registered 53.8, from 51.7.
Irish manufacturing firms recorded a strong rise in average prices charged in May, linking higher output charges to increased costs, with many citing fuel surcharges and higher metals prices. The input price index rose to 68.0 from 62.7 the previous month, while output prices ticked up to 56.3 from 54.8.