Manufacturing output down

IRISH manufacturing output was almost 6% down year-on-year in February, figures released by the Central Statistics Office show.

The ban on smoking on the workplace is also having an impact, with the production of tobacco products down by 9.9% in February compared to February 2004 when the ban was not in place. This could be the harbinger of further rationalisation and job losses in the sector.

Friends First chief economist Jim Power said that output from the ‘modern sector’ which is mainly comprised of the chemical and high technology sectors declined by 5.4% on a year-on-year basis, while the ‘traditional sector’ showed an annual decline of 3.4%. Mr Power believes the Irish manufacturing sector is under pressure from increased international competition, adverse exchange rate developments, a generally more challenging export environment, and slower growth in the manufacturing base.