Irish construction firms have recorded their fastest growth in new orders in five months, figures indicate.

Britain’s recovery is losing steam as worries about the world economy grow, consumers curb spending, and manufacturing sector weakness spreads, said the authors of a closely watched business survey yesterday.

The outlook for output and jobs at Irish manufacturers looks rosy, with demand in the UK and in the rest of the world likely to drive demand in factories through the rest of the year, a major survey of purchasing managers has revealed.

Services companies continued expanding last month despite the double-edged sword of quantitative easing pushing input prices higher and eroding profitability.