Manufacturing production output down 2.7% on month-by-month basis

Production output across Ireland’s manufacturing industries fell by 2.7% on a rolling month-by-month basis in March and was down by 6.2% on a year-on-year basis, according to newly published data from the CSO.

The latest monthly industrial production and turnover figures, released yesterday, caps an underwhelming week for the sector; the latest purchasing managers’ index (PMI) having already hinted that things got even worse in April.

The CSO’s March data means that only February has shown any signs of production growth so far this year.

March’s performance was underpinned by a monthly production decrease of 4.7% in the tech and pharma-heavy ‘modern’ sector; and a 0.3% drop in the domestic/indigenous-driven ‘traditional’ sector.

Output performance from the ‘traditional’ sector had been expected to be in decline in the first quarter of this year.

Speaking on the subject last month, Davy Stockbrokers’ chief economist Conall Mac Coille noted the close correlation between the traditional sector here and European industrial production, adding that conditions are likely to remain weak as long as the European recession persists.

Yesterday’s CSO figures follow Wednesday’s publication of the April Manufacturing PMI from NCB Stockbrokers, which suggested that last month saw production levels from Irish-based manufacturing firms fall at the fastest rate for nearly four years.

Various negative knock-on effects were evident; most notably the sharpest decline in employment levels in the sector since late 2011.