Conditions in the Irish manufacturing sector are showing signs of stabilising, according to the latest industrial survey.
The NCB Purchasing Managers' Index (PMI), a broad indicator of conditions in manufacturing, rose from 45.8 in July, to 48.1 in August, suggesting the downturn had eased markedly and was the least severe since April. A reading above 50 indicates expansion and below contraction.
Firms reported that improved business confidence and fewer uncertainties relating to global and political factors.
Export orders also showed some improvement in August reflecting the slight weakening of the euro against the US dollar during the second half of the month.
Nevertheless, the euro maintained much of its relative strength against the US dollar and this continued to reduce competitiveness in many international markets - leading to a 13th successive monthly contraction of new export orders.
In line with reduced levels of output and new business, Irish manufacturers were again found to have pared back staffing levels at their units in August. However, the rate of job shedding was only modest, and the slowest for seven months.