Strong growth seen in manufacturing

Manufacturing production levels rose healthily in April, with both the “traditional” and “modern” sectors of the economy showing strong growth, according to the latest data from the CSO.

The latest monthly industrial production and turnover index, from the CSO, shows production among Irish-based manufacturing companies rose by 1.3% in April, compared to March; and was up by 2.2% on a year-on-year basis.

The latter increase meant April was the third month this year to show an annualised rise — following on from a 2.4% year-on-year rise in March and a 0.2% increase in January.

February’s 3.2% drop marked the only annualised dip in 2012 so far.

The hi-tech/chemical and pharmaceutical-focused modern sector saw production levels rise by 2% in April, with the traditional sector faring even better, with a 2.5% rise.

On a year-on-year basis, April saw a 3.7% rise for the modern sector and a 1.7% rise for the traditional sector.

According to Davy Stockbrokers’ chief economist, Conall MacCoille, recent data — including yesterday’s — have given tentative signs that the “defensive nature” of Ireland’s industrial sector has provided some protection from the wider eurozone recession.

“Irish industrial production and exports remained relatively robust during the 2009 recession.

“Though slowing, Irish industry may be shielded from the worst of the euro area recession. The recent PMI [purchasing managers indices] and today’s industrial production data provide tentative evidence to support this view,” he said.

Mr MacCoille added that Ireland’s industrial performance has been better than initially anticipated and has been outpacing the broader eurozone across all indicators.

Meanwhile, yesterday’s CSO data also revealed a 4.2% monthly and 3.6% annualised fall in the seasonally-adjusted industrial turnover index, for April.