Industrial production rises 1%

Industrial production grew by 1% last year but slowed dramatically in the final quarter, according to data released by the CSO.

Bloxham Stockbrokers’ chief economist Alan McQuaid said, that for 2011 as a whole, manufacturing output was 1.6% higher on average than 2010, while total industrial production was up 1% over the same period.

He said the annual rates of increase were well down on those posted in 2010, when manufacturing output was up 8.3% and total industrial production 7.7%.

Mr McQuaid said that while the omens do not look particularly good on the manufacturing front at the moment, Ireland’s focus on relatively recession-hardy exports such as pharmaceuticals and its improving competitiveness should help it weather the storm better than most.

“With domestic demand so weak it is in our view vital for the economy that the manufacturing sector remains healthy and competitive,” said Mr McQuaid.

“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, and we still think a strong manufacturing production/export performance will provide the platform for a sustainable Irish economic recovery over the next few years.”

Davy Stockbrokers’ chief economist Conall Mac Coille said the broad picture is of a slowdown in industry and manufacturing since the beginning of the year, but said they remain wary of drawing firm conclusions.

“In Q4, annual industrial production growth was 0.0% and manufacturing production 0.7%,” he said.

“The annual growth of industrial production has slowed from growth of 13.6% in Q4 2010. In part, this slowdown could relate to the weakening of demand conditions in the euro area.

“Given the volatility of the Irish industrial production data, we are wary of drawing firm conclusions at this point about prospects for 2012.”