Ireland's manufacturing sector deteriorated at a marginally slower rate in February, with further growth in new export orders reflecting the gap between low domestic demand and a pick up in global activity.
The NCB Purchasing Managers' Index (PMI), which measures Irish manufacturing activity, rose to 48.6, back towards the 50 mark separating growth from contraction, after falling to 48.1 in January largely due to unusually freezing weather.
"It is much the same story as in previous months," Brian Devine, economist at NCB Stockbrokers, said.
"Domestic demand and employment remain weak while new export orders continue to accelerate past the 50 mark reflecting the pick up in global activity."
While Ireland technically pulled out of recession in the third quarter of 2009 based on quarterly gross domestic product (GDP) data published in December, the economy has remained very weak with its more relevant measure of gross national product (GNP) continuing to fall.
New export orders, which stayed above the level separating growth from decline for a fourth consecutive month, accelerated to 56.8 in February from 53.5 a month earlier to reach its highest mark since May 2006.
Almost all of the other sub indexes continued to show contraction with manufacturing output, which enjoyed a brief spell of growth in November, coming closest to a return above the 50-mark.
Reuters