Industrial production drops by 2.3% in August

Output from Irish-based factories fell by 2.3 per cent in August, underscoring the volatile nature of the sector.

However, the latest figures from the Central Statistic Office (CSO) show manufacturing output as a whole remains 21.2 per cent up on last year.

The adjusted volume of industrial production for the three-month period from June to August was 12.4 per cent lower than in the preceding quarter.

The figures show production in the “Modern” sector, comprising high-technology and chemical sectors, rose by 2.5 per cent in August, and is now up nearly 30 per cent on an annual basis.

Chemicals and pharmaceuticals recorded an annual increase of 37.6 per cent.

There was a monthly decrease of 0.5 per cent in the “Traditional” sector, but output in this sector was still up 5.5 per cent in the year.

Alan McQuaid of Merrion Stockbrokers said the improvement in the UK economy and recovery in sterling are clearly a positive development on this front.

“Despite the overall pick-up in output on the indigenous side in recent months, manufacturing growth will for the foreseeable future be primarily driven by industries under the ‘Modern’ or multi-national umbrella, but based on the figures in the year-to-date the prospects look very good,” he said.

“We expect the global economy to pick up speed in the coming year and demand for Irish goods in general should increase as a result, with currency developments, particularly in relation to the euro/dollar a huge plus.”