DUBLIN, Sept 1 (Reuters) - Ireland's manufacturing sector slowed in August and companies cut jobs at a faster pace, indicating the economy's recovery from the euro zone's longest recession remains fragile, a survey showed on Wednesday.
The NCB Purchasing Managers' Index, which measures Irish manufacturing activity fell to 51.1 in August, its lowest level since February and down from 51.4 in July.
The reading indicated that although operating conditions in the sector improved the rate of growth was the weakest since the indicator crossed the 50 mark separating growth from contraction in March.
Companies shed staff at the fastest pace since March, with the sub-index measuring employment falling to 47.0 from 48.8 in July.
However, while growth in output slowed, there was an encouraging sign in that new orders accelerated in August for the first time since March.
Ireland is relying on exports to help keep economic recovery on track as stringent austerity measures introduced to cut a massive budget deficit, the biggest in Europe last year, and a weak housing market are expected to continue to weigh on consumer spending.
Unemployment stands at an estimated 13.7 percent and a leading banking trade union said this month that some 4,000 jobs in the financial sector would be lost over the next year as domestic lenders restructure and foreign-owned banks trim their operations in the wake of Ireland's banking crisis.
"As one of the most highly leveraged economies to global growth in the world, particularly given the prospects for domestic demand, it is promising that Irish manufacturers continue to attract new orders from abroad," said NCB economist Brian Devine. (Reporting by Andras Gergely; Editing by Susan Fenton)