Irish manufacturing weakened at the end of 2012 as output and new orders increased at slower rates, a survey revealed Wednesday.

The NCB Manufacturing Purchasing Managers' Index dropped to 51.4 in December compared to 52.5 in the previous month.

Weak domestic demand and higher energy costs brought down growth to its slowest pace in four months.

Activity in manufacturing output expanded in December due to a strong export sector but the increase was only slight.

However, firms continued to take on extra staff while manufacturers increased their charges for the third time in four months due to rising input prices.

The indicator designed to provide a single-figure measure of the health of the manufacturing industry showed rates fell to 50.9 from 51.9 in November, the lowest level since February. That said, it remained above the 50 line that separates growth from contraction.

Total new business grew again in December despite the slowest rate since February thanks in part to strength in exports, Philip O'Sullivan, Chief Economist at NCB Stockbrokers, told Reuters.

"The underlying trends remain positive," he said.

"Output prices remain restricted by competitive pressures but increased in December and look to be getting a little firmer."

RD

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