Industrial production rises in January

Industrial production rose in January, new data from the Central Statistics Office showed today.

According to the latest figures, production from manufacturing industries was 0.7 per cent higher in January compared with December 2011.

But on an annual basis, productions fell slightly, recording a decrease of 0.1 per cent.

"The worry is though that with production weakening in the latter part of 2011, there will be a negative carry-over into 2012, which doesn't augur well for the prospects of Irish exports in the near-term, an integral part of Ireland's economic recovery hopes," said Bloxham chief economist Alan McQuaid.

"That said, industrial production figures can be quite volatile, particularly in relation to the chemicals sector, which accounts for half of Irish merchandise exports."

Production in the modern sector, which includes high technology and chemical sectors, rose by 4.9 per cent on a monthly basis. The traditional sector, however, fell by 7.4 per cent.

In the three-month period between November 2011 and January 2012, production fell by 7.4 per cent compared to the preceding quarter.

Turnover was lower in January, falling by 9 per cent on an annual basis and 3.8 per cent year on year.
"While the omens don't look particularly good on the manufacturing front at this point in time, Ireland's focus on relatively recession-hardy exports such as pharmaceuticals and its improving competitiveness should help it weather the storm better than most," Bloxham's McQuaid said.

"With domestic demand so weak it is in our view vital for the economy that the manufacturing sector remains healthy and competitive. Whatever about the near-term, we continue to believe that when the world economy regains momentum, Ireland is better placed than most to take advantage of that."