The economy maintained its growth pattern in December with employment and exports both continuing to grow, according to data published yesterday.
The purchasing managers' index reached a new high for the third consecutive month as the rates of growth of manufacturing output and new orders strengthened, leading to increased employment.
The NCB Purchasing Managers' Index, compiled along with the Irish Institute of Purchasing Management, rose to 58.7 in December from 58.6 in November.
The index has measured continuous growth over the 20 months since the data was first recorded. The rate of expansion slowed slightly in 1998 but accelerated again in 1999. In December, both output and employment rose in response to fuller order books with demand from home and overseas continuing to strengthen.
However, input prices also continued to rise, pointing to higher inflation in the pipeline but the rate of increase did slow slightly. One in five companies noted an increase in purchasing prices with only 1 per cent noting a decline. Higher prices were mostly associated with costlier imports due to the general weakness of the euro. The rate of growth eased, however, from 63.8 to 60.8.
Output rose at the fastest rate so far at 62.3 from 61.9. New orders showed the fourth largest rise to date at 60.8, from 60.4. The index measures the rate of growth of manufacturing in the economy; a reading below 50 indicates a contraction and above 50 expansion.
