Ireland's industrial production rose by 0.4 per cent in January compared with December, but fell by 1.4 per cent over the year, new data from the Central Statistics Office showed today.

The annual decline was led by the “modern” manufacturing sector, which includes chemical products, computer equipment and pharmaceuticals. That sector fell by 5.3 per cent year on year, despite a lift of 1.6 per cent in January compared with the previous month.

The “traditional” sector, meanwhile, showed a monthly rise of 3 per cent, with an annual increase of 7.8 per cent when compared with January 2013. The traditional sector accounts for two-thirds of jobs in the industrial sector in Ireland, making it more critical to the economy.

The seasonally adjusted volume of industrial production for manufacturing for the three months to January 2014 was 0.2 per cent higher quarter on quarter.