Industrial output fell in December, but remains above December 2004 levels. Figures released yesterday by the Central Statistics Office (CSO) also confirm indigenous industries outperformed foreign-owned industries.

The CSO's index of industrial production fell 6.8 per cent between November and December. But this was due to a contraction in output from the so-called "modern" sector, where output fell by 11.1 per cent over the same period of comparison. This compares to a 4.9 per cent rise in output from other, mainly domestically owned, sectors.

The "modern" sector includes high technology and mainly foreign-owned industries whose size and volatility can distort industrial production statistics. It accounts for almost two-thirds of total industrial output, but employs 80,400 people, only one-third of the industrial workforce.

The remaining two-thirds - some 154,300 workers - are employed in other sectors of industry which account for one-third of output. Since 2000, output has risen by 42 per cent in the modern sector but by just 5 per cent in other sectors combined. Annual output growth remains positive across all sectors, however.

Overall, output rose by 4.2 per cent in December. Output from the modern sector grew by 3 per cent, while output from other sectors rose by 7.1 per cent. Output in the last quarter of 2005 was 7.5 per cent higher than a year previously. In spite of the December dip, output in this period was 3 per cent higher than in the preceding quarter due to a strong November performance.