Industrial production picked up slightly in October, although it is now running below last year's levels, according to the latest figures.

Production in the manufacturing sector was up 3 per cent on September, but was running 6.6 per cent below the same month last year.

On a three-month basis, which the Central Statistics Office (CSO) says is a better indicator of the trend, production in the August-to-October period was 4.5 per cent lower than the previous three months.

The fall-off in the overall figures has been heavily influenced by a drop in output of the basic chemicals sector, where production in October was down 30 per cent on the same month from last year.

Overall, the "modern" sector - defined by the CSO to include high-tech and pharmaceutical/ chemical companies - showed an annual decrease of 9 per cent in October.

The rest of industry - the traditional sector - recorded a 1.8 per cent annual increase, after a recovery in production levels in October.

The trend in production has been volatile in recent months, mainly due to swings in the modern sector and particularly chemicals.

The easing off in October in production is a further indication that some slowdown in international growth and the rising euro had an impact on the production sector in the autumn months. A similar trend has been shown in recent export figures, including this week's September data for non-EU exports.

In a comment on the figures, Mr Alan McQuaid, economist with Bloxham stockbrokers, said that the overall increase in industrial output this year is likely to be just 2-2.5 per cent, compared to 5 per cent the previous year. Another low single-digit increase is on the cards for next year, he predicted.