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Ireland's man. growth rate slows

Friday, February 01 07:35:12

Growth in Ireland's manufacturing sector slipped to a nine-month low in January, as the flow of new orders contracted for the first time in a year, a survey showed today.

Bailed out by Europe and the International Monetary Fund two years ago after a dramatic real estate crash, Ireland has now posted growth in manufacturing for 11 consecutive months, but the recovery remains fragile.

The NCB Manufacturing Purchasing Managers' Index dropped to 50.3 in January from 51.4 a month earlier, a fraction above the 50 percent mark that separates expansion from contraction.

"While output remains in positive territory and new export orders grew for a fourth successive month, other areas showed signs of weakness," said Philip O'Sullivan, chief economist at NCB Stockbrokers.

"Tying it all together... today's release points to a sluggish start to 2013 for the manufacturing sector," he said.

Manufacturing contributes around one quarter of Ireland's gross domestic product, according to World Bank figures.

New orders contracted for the first time in a year, falling to 49.5 from 50.9 in December, while employment contracted for the first time in 11 months.

Input prices grew sharply, while output prices contracted, squeezing manufacturers' margins. ( C) Reuters