Industrial production on target to grow by 20-25% in 2014

Output from Irish-based factories grew by 21.3 per cent in the year to September 2014, driven by growth in the high-technology and chemical sectors. However, in the three-month period July to September, manufacturing output fell by 4.2 per cent on the preceding three-month period, pointing to ongoing volatility in the sector.

On a monthly basis, industrial production was 3.3 per cent higher in September than in August. The so-called “modern” sector, comprising a number of high-technology and chemical sectors, showed a monthly decrease in production for September 2014 of 0.5 per cent, but is up by 27.6 per cent in the year. There was a monthly increase of 0.6 per cent in the “traditional” or indigenous sector, which grew by 8.8 per cent over the year.

Alan McQuaid, economist with Merrion Capital, said that while there has been a 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.

He said that the prospects for further growth remain good, and forecasts that manufacturing output for 2014 as a whole will be around 20-25 per cent higher than 2013, following a decline of 2.1 per cent last year.

“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,” he said.