Ireland's manufacturing production expanded in October despite the challenging global backdrop, according to the latest NCB manufacturing index.

The index registered a reading of 50.1 last month, (a reading above 50 indicates growth), an improvement from 47.3 in September. New orders increased for the first time since May amid some reports of improving market conditions.

However in spite of increased workloads, manufacturers continued to reduce their staffing levels again last month. This represented the fifth fall in employment levels in the sector in the past six months.

Despite a marked increase in input prices last month, manufacturing firms lowered their output charges in an attempt to stimulate demand.

“It is surprising that the index expanded given the global backdrop and the fact that export orders actually declined,” commented Brian Devine, chief economist with NCB Stockbrokers.

“Ireland is not going to be able to buck the trend should advanced economies slow but the fact that the US is looking stronger than the euro area should be a relative benefit for Ireland,” he added.