The Irish manufacturing sector is continuing to decline, according to figures for June.

The NCB's seasonally adjusted Purchasing Managers' Index dropped to 44.7 last month. This is the survey's lowest point, and is positioned inline with April's figures.

June's figures dropped slights from May (45.2). This represents a continued contraction in the sector, with June being the seventh monthly slump in a row.

According to the NCB output, orders and employment levels all fell during June.

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Production has contracted for the fifth month in a row, culminating in the third sharpest drop in the survey's ten-year history.

New business is continuing to fall, as is work from abroad, which has been attributed to the strengthening of the Euro negatively affecting demand.

As a result manufacturing employment levels are still falling, due to the reduced workloads.

Input costs for the sector peaked last moth, with the highest increase for over four years. This has been the result of inflation in the domestic economy.

Many firms reported higher prices for oil, plastics and metals, which has prompted manufactures to increase charges.

NCB's chief economist Eunan King said: "Conditions in the manufacturing sector remained challenging in June and are likely to remain so as new orders continue to contract."

"The deterioration in both domestic and external economic conditions coupled with the strength of the euro is adversely affecting demand," added Mr King.

(PR/JM)