The manufacturing sector experienced a modest improvement in business conditions in February representing a gain for the 30th straight month.
The seasonally adjusted NCB Purchasing Managers index rose to 52.4 last month.
NCB said the continued improvement in business conditions was supported by the sustained growth of new business.
It said total new orders increased mainly as a result of domestic demand as a fall in new export orders was recorded for the first time since last May.
The index shows that input cost inflation remained sharp as firms continue to pay higher prices for fuel and raw material inputs.
Chief Economist with NCB Stockbrokers Dermot O'Brien said that February's PMI survey was a little disappointing.
Mr O'Brien said: "Though manufacturing activity continued to grow, the pace of growth slowed for the third month in a row and employment fell for the first time in seven months".
"A fall in export orders - the first since May 2005 - appears to have been the main reason for the deterioration, with manufacturers citing increased competition in export markets.
Domestic demand remains robust, however, and overall orders continued to grow in February, albeit more modestly than in earlier months," he added.