Ireland's Purchasing Managers' Index (PMI) slipped in July after edging higher the previous month to signal only a fractional expansion of the Irish manufacturing sector, NCB Stockbrokers said today.
The PMI Index, which gives an overall view of manufacturing conditions, eased back to its May level of 50.2 - the survey low - in July, after recording a level of 50.9 in June.
The survey is seasonally adjusted, with readings above 50.0 signalling growth and below 50.0 signalling contraction.
NCB said weaker growth of both output and new orders continued to subdue the rate of growth of the PMI.
However, the first fall in overall manufacturing employment since the survey began three years ago, and the fastest rate of improvement of suppliers' lead-times in the survey history had the most detrimental impact on the indicator, it added.
"The setback in the PMI in July is disappointing, particularly the indication it gives that manufacturing employment has stopped growing," NCB's chief economist Mr Dermot O'Brien said in a statement.
"The increasing impact of the global economic slowdown as reflected in a sharp deterioration in export orders, seems to be the main cause," he said.
The PMI is based on a survey of 285 manufacturing companies in Irelandand is conducted in association with the Irish Institute of Purchasing and Materials Management.