NEW ORDERS for industrial goods rose faster in Ireland than anywhere else in the euro zone in June, according to new data.
Figures from the European Union’s statistics office, Eurostat, show that industrial orders increased by 14.8 per cent in Ireland in June this year compared with the previous month. This compared with a 3.1 per cent rise month-on-month for the euro zone as a whole.
The figures beat international analysts’ expectations, which had been predicting more modest growth, and add to recent economic data pointing to a slight improvement in the economic landscape. The figures, however, represent a 25 per cent decrease in new industrial orders from the same period last year.
Economists in Ireland cautioned against reading too much into the figures. KBC’s chief economist Austin Hughes said analysts could only speculate at this stage on the reason for the surge in Ireland’s industrial new orders in June. “It is most likely a correction on the previous month’s figures.”
Other economists said the figures could be skewed by one or two sectors, particularly pharmaceuticals and IT. They said a clearer picture would emerge with more detailed data to be published by the Central Statistics Office.
“The real story [in the Eurostat figures] is the rise in the overall euro zone figure, which suggests an improvement in the global economy,” said Mr Hughes.
He added that the June figures show Ireland would be well-positioned, in terms of manufacturing and industrial activity, when European manufacturing and production picked up.
The new order index measures the value of future deliveries of products and services to businesses and as such gives an indication of future manufacturing and industrial activity. Ireland’s performance in the index, month-on- month, has been erratic since the beginning of the year.
The rise of almost 15 per cent between May and June comes in the wake of a decrease of 18 per cent between April and May. Similarly, a rise of 17.3 per cent between February and March offset a fall of 13.4 per cent in the previous month.
