Irish manufacturing activity rose by 1.2 per cent between March and April according to data published by the Central Statistics Office this morning.
The seasonally adjusted volume of industrial production for Manufacturing Industries for the three month period between February and April was also 1.2 per cent higher than the previous quarter.
A breakdown of the data shows that the 'modern' sector, comprising a number of high-technology and pharmaceutical industries, showed a monthly increase in production of 2.0 per cent, while there was an increase of 2.5 per cent in the 'traditional' Sector.
Meanwhile, European PMI figures published today showed a more negative trend. Euro area services and manufacturing output contracted in May for a fourth month, adding to signs the economy is suffering under the worsening sovereign-debt crisis.
A composite index based on a survey of purchasing managers in both industries dropped to 46 from 46.7 in April, London-based Markit Economics said today.
While above an initial estimate of 45.9, the May reading is the lowest since June 2009. The indicator has remained below 50 - indicating contraction - for four months. European companies are cutting back on hiring and spending as the intensifying fiscal crisis makes the economic outlook more uncertain.
While the 17-nation euro area narrowly avoided falling into a recession in the first quarter, unemployment has reached the highest on record and economic confidence is at the lowest since 2009.
"The PMIs indeed point to a contraction in the second quarter," said Frederik Ducrozet, senior euro-zone economist at Credit Agricole in Paris. "The most important development is not so much the expected weakness in the periphery but rather the recent worrying trend seen in France and, to a lesser extent, in Germany, where domestic demand could remain constrained for a longer period than initially expected."
The euro extended declines against the dollar on the data, trading at $1.2429 at 10:26 a.m. in Brussels, down 0.6 per cent on the day and near a two-year low.
European Funds Investors are growing more concerned about the debt crisis after inconclusive Greek elections raised the prospect of a breakup of the single currency and as Spain struggles to recapitalize its banking system.
Spanish budget minister Cristobal Montoro today called for European funds to be used to shore up the nation's banks.
Finance ministers and central bank governors from the Group of Seven hold a call today to discuss the debt crisis. The G-7 discussions precede a summit of leaders from the Group of 20 on June 18-19 in Los Cabos, Mexico.
Bloomberg
