A spike in new orders led to growth in the State's manufacturing sector activity for the first time since February, a survey showed on Friday.
The AIB S&P Global manufacturing Purchasing Managers' Index (PMI) for Ireland rose to 50.8 in August from 47.0 in July, marginally above the 50 threshold that separates growth from contraction.
New orders in August were the second strongest in 15 months, and there was an increase in demand from overseas, with new export orders expanding for the first since May 2022.
Firms responded to higher volumes of new work by adding to headcounts, and the pace of growth in employment was among the fastest in the past year.
AIB chief economist Oliver Mangan said the expansion is in marked contrast to the trend elsewhere.
"The flash August Manufacturing PMI readings were very weak in the euro zone and UK, at 43.7 and 42.5, respectively, while the US index slipped back from 49.0 to 47.0," Mangan said.
The data showed another drop in the input costs faced by manufacturing firms in Ireland, the fifth decrease in as many months. According to survey respondents, falling raw material and energy prices were key factors behind the sustained drop.
