The headline AIB Manufacturing Purchasing Managers' Index posted a 6-month high of 50.4 in August, up from 50.1 in July. A score above 50 indicates expansion in the sector.
Output grew at the fastest pace in six months in August. This helped firms raise their workforce numbers at the quickest pace since August 2023.
The survey revealed that firms experienced improved supply conditions and fewer backlogs of work in August.
Meanwhile, new orders decreased for the sixth straight month amid subdued demand conditions. Customer destocking and concerns about the economic outlook had been factors contributing to lower new orders, the survey said.
On the price front, input price inflation remained elevated in August, easing only marginally from the 17-month high seen in July. Cost pressures were largely driven by rising raw material prices. As a result, selling prices also grew at an accelerated pace.