Ireland's manufacturing sector is coming under increasing pressure from the strong euro and weak external demand, according to the latest NCB Purchasing Managers' Index.
The index - a leading indicator of conditions in manufacturing - found business conditions had deteriorated for the ninth successive month in June.
The headline index figure fell to 45.7 from 47.5 in May, the rate of deterioration was the fastest since the survey began in May 1998. A reading of below 50 in the index signals a contraction of industrial activity.
Commenting on the survey, Mr Eunan King, senior economist at NCB, cited weak external demand and currency strength as the main problems facing industry.
Companies reported a fall in new business orders for the ninth successive month. The rate of decline of order books was the fastest since October 2001.
The overall size of the manufacturing workforce was pared back for the tenth month running in June, as firms tried to align staffing levels at their units to lower levels of activity.