Irish manufacturing shrinks as demand falls Markit's Purchasing Managers' Index (PMI) for Irish manufacturing barely improved to 48.6 from 48.5 in November, and remained below the 50 mark that denotes growth in activity. The index has risen above the 50 mark just once in the past seven months. Ireland was the eurozone's worst-performing economy apart from Greece in the third quarter when it shrank 1.9pc from the previous quarter. It is relying on export-led growth to revive it but a failure to shore up confidence in the euro zone risks tipping the bloc, and Ireland's key trading partners, back into recession and delaying Dublin's eventual exit from an EU-IMF bailout. Around 31pc of respondents to the PMI survey noted a reduction in new orders against 22pc who noted an increase. New export orders, however, rose for the first time in four months on increased orders from the United Kingdom, an encouraging sign but whether the increase is sustainable remains to be seen. Employment levels improved slightly to 50.5 from 48.3 in December, ending three months of job losses. Output prices fell for the fifth consecutive month and at the fastest pace since February 2010 due to strong competition. Input prices rose for the 24th consecutive month, boosted by high raw material costs and a weakening of the euro against the pound.