Output from Irish-based factories rose 8.2 per cent in June, according to new figures from the Central Statistics Office.
The latest industrial production figures from the CSO, a key gauge of the economy’s underlying health, show production for June 2016 decreased by 0.4 per cent when compared with June 2015.
Industrial output increased 1.5 per cent in the first-half of the year, a sharp slowdown from the 35 per cent expansion recorded in 2015 according to Davy Stockbrokers, albeit last year’s figures reflect statistical distortions behind Ireland’s artificial 26.3 per cent GDP growth.
"Digging a little deeper shows that output in the modern sector, dominated by multinational pharmaceutical companies, is up just 0.3 per cent after an enormous 57 per cent expansion in 2015," Davy analyst Conall Mac Coille said.
The modern sector, which comprises high-tech, chemical and pharmaceutical sectors, showed a monthly decrease in production of 0.7 per cent for June 2016 and an annual decrease of 3.4 per cent compared with June 2015.
There was a monthly increase of 2.3 per cent in the traditional sector for June 2016 and an annual decrease of 1.9 per cent compared with June 2015. Traditional sector output has contracted by 0.4 per cent in the first half of the year following a 4.4 per cent gain last year
“This suggests that manufacturing and exports will make a smaller contribution to GDP growth in 2016, with firms struggling with sterling’s weakness and slow demand,” Mr Mac Coille said.
