Irish manufacturing continued to grow last month, but the pace of expansion was the slowest for two years — raising fears about the the outlook for expansion.

The latest data on the health of the services sector has revealed a strange coincidence with growth slowing to a 14-month low at the same time as optimism crept up to the highest levels seen in the same period.

Manufacturing activity rose at the fastest rate in almost 15 years last month as the sector continued to show signs of month-on-month improvement.

The Irish manufacturing sector continued to expand and increase employment levels, although the pace of expansion moderated to its lowest level in five months.