Growth in Ireland's manufacturing sector reached its strongest for over a year, the NCB Purchasing Managers' Index (PMI) showed today.
The seasonally adjusted PMI, which measures activity in manufacturing, pushed up to 54.3 last month - its highest level since a reading of 54.7 in July 2006 - after dipping to 53.1 in July from 54 in June.
The index has now been above the 50 mark, separating growth from contraction, in each month of the past four years.
Output growth accelerated to 56.5 in August, its fastest pace in a year, supported by buoyant export orders that hit 53.8, the highest level since June 2006. Firms noted a rise in orders from clients in Britain in particular.
New orders increased to 56.1, also a year high. New-order volumes have now risen in each month since September 2003.
Firms linked business growth to promotional campaigns and a general improvement in underlying demand.
Employment growth resumed in August after some lacklustre readings in recent months when high-profile job losses and a slowdown in the construction industry undermined confidence, and, at 51.2, was at its best level since February.
"Manufacturing optimism is evident in a build-up of stocks of finished products in anticipation of future growth. This is the first time this has happened since October 2004," NCB Stockbrokers chief economist Dermot O'Brien noted.
Stocks of finished goods rose to 50.5 from 46.1 in July.
Input price inflation at Irish manufacturers remained sharp in August - at 63.5 from 63.7 in July - with 30 per cent of firms indicating that costs were higher than one month ago. Input costs have now increased in each month since August 2003.
The rate of output price inflation accelerated to 56.8 from 55.6 in July and was the third highest since charges data were first collected in September 2002.