Manufacturing output increases 3.3% in June

Ireland’s manufacturing industries are powering ahead of their European counterparts, increasing their output by 3.3% in June compared with May, according to figures released by the Central Statistics Office.

Production rose by 10.5% year on year. The seasonally adjusted manufacturing output for the three-month period April to June 2012 was 5.1% higher than in the preceding three-month period.

British manufacturing output fell 2.9% in June after a 1.2% rise in May, the data showed, but beat the forecasted fall of 4.1%. Industrial output fell 2.5% following a 1% rise in May, but did better than the forecasted 3.4% decline.

Davy analyst David McNamara said the figure showed that Ireland was one of the better performing European economies and the country has sustained this growth since the start of the year.

“Industrial production [is] well above [the] eurozone average. Industrial production has experienced sustained growth since the turn of the year,” he said.

The modern sector of the Irish economy made up of a number of hi-tech and chemical sectors drove the growth.

“[The] modern sector [is] outpacing traditional industries. Monthly growth in the modern sector [comprising technology and chemicals industries] of 1% compares to 0.3% in the traditional sector,” said Mr McNamarra.

The growth in Irish manufacturing is being driven by export-oriented industries.

“The defensive nature of Irish exporting industries appears to be weathering the worst of the eurozone recession,” said Mr McNamara.

The chemicals and chemical products sector increased by 15%, while the biggest single increase was in the machinery and equipment category. This sector jumped by 28.1%.

Tobacco, coke, and refined petroleum products, and furniture saw an increase of 15.3%, while other manufacturing jumped by 17%.

Despite encouraging figures from heavier sectors, there were large falls in some of the lighter manufacturing sectors, in particular in the manufacture of clothing.

The CSO recorded the manufacture of clothing as down 54.3%. Textiles was also down falling by 37.9%.