Industrial production stalled in March, new figures from the Central Statistics Office suggest, while manufacturers are facing significant pressure from falling revenues on international markets.

The figures show that manufacturing production in March was 0.7 per cent up on February and 2.6 per cent lower than the same month last year.

The production series has been volatile in recent months. Having fallen each month from September to December last year, there was a rise in both January and February, before the March slowdown. The rise in the early months of this year means that production in the first quarter is still 7.8 per cent up on the previous three months.

Separate turnover figures, published alongside the production data by the CSO, show the price pressure facing many manufacturers, particularly those selling on overseas markets. Turnover for manufacturing industries was down 6.4 per cent in the three months January to March, compared to the previous three months, Meanwhile turnover in March was 12.4 per cent down on March, 2002.

These turnover figures indicate the fierce price competition that manufacturers now face selling into world markets, a trend made worse for companies selling outside the euro area by the recent rise of the currency.

The figures also suggest that the "modern" industrial sector, which has driven the rise in exports and production in recent years, is suffering. Production in this area, which is dominated by information technology and pharmaceuticals, was down 3.7 per cent in March from the same month last year. In contrast, production in more traditional sectors was up 0.2 per cent.

A breakdown of the figures indicates some weakness in the previously high-flying pharmaceutical and chemical sector, where production in March was 3 per cent down on the same months last year. However, production in the first quarter from this sector is still up 9.2 per cent on the last quarter of 2002, suggesting that more data will be required before the trend becomes clear.

Meanwhile, significant annual falls in many of the information technology (IT) sectors show the impact on Irish industry of the global difficulties in this sector. Production of electrical equipment and office machinery are down around 6 per cent.

Turnover figurers indicate that both the IT and the chemicals sectors are also facing significant price pressures internationally.