A "marked deterioration" in business conditions meant output growth in the Republic's manufacturing sector came to an abrupt end in January after more than four years, writes Laura Slattery

Overall activity in the manufacturing sector contracted for the second month in a row, according to the latest Purchasing Managers' Index (PMI), which showed a record decline in employment in the sector and a stark fall in orders for construction-related products.

A quarter of firms surveyed for the index published by NCB said staff numbers had fallen since December.

But while overall new business declined in January, there was a slight increase in new work from abroad due to the closure of rival firms overseas and improved demand for some products.

Alan McQuaid, economist at stockbrokers Bloxham, said the PMI report, together with the rise in unemployment benefit claimants and weakening demand for private-sector credit, provided little cheer for the economy."The likelihood is that things will get worse before they get better."