Activity in the country's manufacturing sector grew only modestly last month, according to new figures.
Softening demand for Irish products in foreign markets, has been blamed.
The figures, compiled by NCB, showed that growth in manufacturing orders is being driven mainly by domestic demand. New export orders declined for the second month in a row.
The index, known as the Purchasing Managers Index recorded 51.3 last month, which was a faster pace of growth than in March which at 50.7 was an 18-month low. (Any figure above 50 represents growth, while a figure below 50 means contraction).
Manufacturers said that the successful introduction of new products and more focused sales efforts had helped to generate further growth of new orders.
Manufacturers also blamed increased oil prices for driving up the price of materials.
The index recorded modest rises in the rate of job creation. Those questioned indicated that additional recruitment had been necessary to satisfy the higher levels of incoming new business.
NCB chief economist Dermot O'Brien said the growth in demand was entirely due to home demand since export orders were again weak. "Gratifyingly, the improvements in output and domestic orders were accompanied by a slight strengthening in employment growth in the manufacturing sector," he said.
Meanwhile, euro zone manufacturing contracted for the first time in 20 months in April, according to the euro zone Purchasing Managers' Index. It is further confirmation that the bloc's tentative economic recovery is stalling in the second quarter.
The survey followed several recent surveys showing that consumers and businesses have grown gloomier about the future as softer global growth, a strong euro and high oil prices take their toll.
The PMI index, based on a survey of around 3,000 companies, slipped to 49.2 - below both a consensus forecast of 49.9 and the 50 level which separates expansion and contraction - from 50.4 in March.
In a note, Davy stockbrokers said that manufacturing is usually one of the best leading indicators of turning points in the economic cycle.
"Therefore, recent trends in the euro zone and US manufacturing are worrying," it said.
