Exports continued to boost Irish manufacturing in November as output and new business in the sector increased slightly.
The NCB Purchasing Managers' Index, which indicates the health of the manufacturing industry, rose to 51.2 last month, compared to 50.9 in October.
The output index rose slightly from 51.1 to 51.5 in November, the fastest pace since July, while the measure of new orders increased from 50.5 in October to 51 in November.
"Fiscal and banking issues rightly continue to be the focus in Ireland, but the underlying economy, especially those areas directly involved in exporting are still alive," said NCB economist Brian Devine.
"New orders also increased for the second month running, driven by the expansion of the export sector in particular."
Export orders increased for the 12th month in the past 13 as global demand strengthened. However, the report noted that expansion in the sector remained weak. The seasonally adjusted index measured 54.7 in November, indicating that there was still expansion in the sector, but was slightly weaker than October, when the index measured 54.9.
New business was higher marginally over the month, but there was spare capacity in the sector, with backlogs of work falling at the fastest pace in nine months.
Employment in the sector continued to fall as manufacturers tried to reduce costs.
A rise in the cost of some raw materials led to input cost inflation rising for the third month on a row, and at the fastest pace since May. The report said some firms increased their output prices as a result, but competitive pressures ensured overall inflation was only fractional.
Business group Ibec said the indicators were encouraging.
"Despite the difficult banking and fiscal positions, the enterprise sector is experiencing recovery this year - this is evident in manufacturing output, exports and now in the labour market," said the group's chief economist Fergal O'Brien.
