DUBLIN (Reuters) - - Irish manufacturing activity grew at its sharpest pace in four months in December, indicating the economy is on track to have finished 2014 as the fastest growing in Europe, a survey showed on Friday.
The government forecasts that the economy grew by almost 5 percent last year after a surge in gross domestic product in the first six months of the year, a rate which would probably make it the best-performing economy in the currency bloc.
After the economy grew by just 0.1 percent in the third quarter, the Investec Manufacturing Purchasing Managers' Index remained strong, rising to 56.9 in December from 56.2 a month earlier. It remained above the 50 mark that indicates expansion for the 19th successive month.
Growth was mainly driven by a further jump in orders from abroad, with the sub-index measuring new export orders rising to 61.7 from November's 59.3 -- its highest in almost five years.
With Europe's economy struggling, companies reported success in securing new business from Asia, the Middle East and Britain, Investec Ireland chief economist Philip O'Sullivan said.
"The strong finish to 2014 is particularly welcome given the recent rise in global concerns, with Russia, Greece, Ukraine and parts of the Middle East all providing reasons to be cautious in the run up to this release," said O'Sullivan.
"We expect 2015 to be another year of progress for the manufacturing sector here, but with the international backdrop looking like it will get worse before it gets better, conditions may not prove to be as favourable as they were in 2014."
(Reporting by Padraic Halpin; Editing by Catherine Evans)