Trading surplus widens in September

IRELAND'S TRADE surplus widened in September as exports continued to grow, according to new data from the Central Statistics Office (CS0).

Preliminary figures for September showed the surplus rose to € 3.91 billion, compared to € 3.8 billion in August. Exports increased 2 per cent to € 7.8 billion over the month, while imports rose 1 per cent to almost € 3.9 billion.

On an unadjusted basis, the surplus rose to € 4.2 billion, as exports rose 4 per cent to € 8 billion and imports increased 7 per cent to €3.8 billion.

Bloxham chief economist Alan McQuaid said the export sector was "the one ray of light at the moment in a fairly gloomy economic picture", and would be the key driver of Irish recovery in the years ahead.

Over the first eight months of the year, exports rose 2 per cent compared to a year earlier, to €58.2 billion. This increase was driven partly by a rise of 11 per cent in the value of medical and pharmaceutical products, and an increase of 89 per cent in metalliferous ores and scrap metal.

The rises were offset somewhat by a 32 per cent fall in the value of computer exports. Other transport equipment, including aircraft, fell by 74 per cent or €459 million.

Ireland's main export markets were the US, which accounted for €13.3 billion, Belgium and Britain. The three territories comprise 52 per cent of the total value of exports in the eight months.

"A worrying aspect for indigenous Irish exports, in particular, is the renewed weakness in the dollar and sterling, making it more expensive for exporters to sell their goods into the United States and UK," Mr McQuaid said.

"But, whatever about the near-term, we still think the greenback and the British pound will strengthen against the euro on a six-month view as the euro zone's mounting government debt problems, and a slowdown in the German economy, start to weigh on the single currency."

In the same period, imports were down 2 per cent to € 29.8 billion, as computer equipment imports declined 36 per cent and transport equipment was down 27 per cent. Ireland imported more petroleum, medical products and road vehicles, the CSO said.

Minister of State for Trade and Commerce Billy Kelleher said the figures showed Ireland's recovery in recent months has been maintained: "The spike in our imports indicates renewed activity in the economy as businesses buy raw materials and consumers spend more.

"A key reason for Ireland's strong export performance is our sharply improving competitiveness and the Government will continue to pursue that agenda."