Output from Irish-based factories fell by 2.2 per cent in December compared with the previous month, official figures show, underscoring the erratic nature of Ireland’s recovery.

On an annual basis, the index of industrial production -as measured by the Central Statistics Office - fell 7.5 per cent compared with the same month last year.

The adjusted volume of industrial production for the three-month period from October to December was 1.5 per cent lower than in the preceding quarter.

The “modern” sector comprising high-tech and chemical firms showed a monthly decrease in production of 4.3 per cent for December while the “traditional” manufacturing sector enjoyed a monthly rise of 0.1 per cent.

Alan McQuaid of Merrion Stockbrokers described the figures as disappointing.

“Whatever about the near-term outlook, we still firmly believe that when the world economy regains momentum, Ireland is better placed than most to take advantage of that,” he said.

“As regards 2014, we are optimistic that all things being equal, manufacturing output will post a modest single digit increase on 2013.”