Modern sector drives 18 per cent rise in industrial production

Industrial production rose by more than 18 per cent in February, with the annual figure showing a 31.5 per cent rise.

That was the the eighth double-digit increase in a row, analysts said.

Seasonally adjusted figures showed volume in the three months to February 2015 was 2.2 per cent higher than the previous quarter.

The data from the Central Statistics Office indicated the modern sector, which includes high tech and chemical sectors, rose by 25.7 per cent in the month, with the traditional sector up 2.2 per cent.

The turnover index for manufacturing industries was 1.4 per cent higher than in January, and 24.3 per cent up on February 2014.

Merrion Economics described the figures as “very positive”.

“Despite the overall pick-up in output on the indigenous side in recent months, manufacturing growth will for the foreseeable future be primarily driven by industries under the “Modern” or multi-national umbrella, and based on the figures for 2014 the prospects look very good for 2015,” Alan McQuaid said. “Ireland is better placed than most to take advantage of an upturn in the world economy, with the manufacturing PMI in expansionary territory for the twenty-two months up to March. However, it is crucial that the economy remains competitive, something which IDA Ireland has pointed out on a number of occasions recently. The last thing the country needs to do is put foreign-direct investment at risk.”