DUBLIN, Oct 1 (Reuters) - Ireland's manufacturing sector shrank at its slowest pace in 19 months in September and new exports orders resumed growth, a survey showed on Thursday, in a sign Ireland is closer to leaving one of the western world's deepest recessions.
The NCB Purchasing Managers' Index (PMI), which measures Irish manufacturing activity, rose to 46.6 from 44 in August, hitting its highest since February 2008 but still below the 50 mark separating growth from contraction.
The sub-index measuring new export orders also reached a 19-month high and entered positive territory at 50.6 versus 43.9 in the previous months.
"Those panellists reporting higher new business from overseas mentioned signs of improving demand in some foreign markets," said Markit, which compiles the data.
Data last week showed the slide in Ireland's gross domestic product halted in the second quarter of 2009 from the preceding three months, defying forecasts for a fall and signalling signs of stability in the economy.
"With export orders leading the way it is now likely that the manufacturing sector will start to grow in Q4 although the recent weakness in sterling is likely to stall the recovery of those manufacturers reliant on the UK market," Brian Devine, economist at NCB Stockbrokers said.
(Reporting by Andras Gergely; Editing by Victoria main)