Export growth faltered slightly in the early summer months, with new figures from the Central Statistics Office (CSO) pointing towards weakness in the second quarter of the year.
The seasonally adjusted numbers show that the value of exports fell by 14 per cent to €6.5 billion between April and May. Provisional CSO figures suggest that this drop was partly recovered in June, but exports of €6.7 billion over the month were still lower than trade levels recorded earlier in the year.
The weaker trend, which some economists say will have dented economic growth in the second quarter, was mirrored in industrial production figures, also released by the CSO yesterday.
Estimates for industrial production between April and June point to a 1.6 per cent decline on the previous quarter. The drop was particularly notable in the chemicals sector, where production was down 6.2 per cent.
A weaker picture in chemicals also emerged in the export figures, where the data showed a 5 per cent drop in exports in the second quarter when compared to the preceding three months.
While export and production data for the chemical sector can be "lumpy" from month to month, the fall is nonetheless notable, since the area accounts for almost half of the Republic's total export trade.
Despite this, Goodbody Stockbrokers economist Mr Dermot O'Leary was reluctant to place much emphasis on the anaemic nature of the industrial production and export figures. He said neither release was consistent with his view of healthy global demand.
"We expect that the Q2 slowdown in Irish exports will prove to be short-lived and remain of the view that the superior global growth, relative to 2003, should spur export growth in the second half of the year," Mr O'Leary said.
Economists at Davy Stockbrokers were less convinced, pointing out that export volumes, as well as value, were also certainly weaker in the second quarter than at the start of the year.
"It is likely that net exports will act as a drag on overall growth," Davy said.
A geographical breakdown of the export figures showed that while trade with Germany and Britain fell back over the first half of the year, exports to the 10 EU accession countries were up by 5.9 per cent from a low base.
The Minister of State for Trade and Commerce, Mr Michael Ahern, stressed this as a particular highlight in the export numbers, which he said showed a welcome "diversity and dynamism" in the sector.
