Industrial production falls 3.6%

Manufacturing production declined by 3.6 per cent in February compared to January, according to new figures from the Central Statistics Office (CSO).

On an annual basis, production fell by 3.3 per cent from February 2011 to the same month this year.

The seasonally adjusted volume of industrial production from December to February was 3.9 per cent lower than in the preceding three month period.

The so-called modern sector, which comprises a number of high-tech and chemical sectors, showed a monthly decrease in production of 5.8 per cent in February. During the same month there was a 0.4 per cent increase in the traditional manufacturing sector.

The seasonally adjusted industrial turnover index for manufacturing industries was 6.2 per cent lower in February compared to January. On an annual basis turnover was 5.7 per cent lower when compared with February 2011.

Davy Research chief economist Conall Mac Coille said it was difficult to infer much from the month-on-month changes as production data are extremely volatile and prone to revision.

However, he said the broad picture is of a slowdown in industrial production growth which reflects weakening demand in the euro zone.