January manufacturing output rises, driven by ‘modern’ sector

Manufacturing output surged in January, but the huge increases were again driven by the so-called ‘modern’ part of the economy dominated by multinationals which provide proportionately fewer jobs than indigenous firms. 

CSO figures showed that overall manufacturing output increased 15% in the month and had climbed 48% from January 2015.

The ‘modern’ industries, including pharmaceutical, computer, and electronic firms, led the charge, recording a huge 22.6% monthly increase and an annual surge of over 78%.

In contrast, the ‘traditional’ sector posted more modest increases of 5.4% in the month and an annual rise of only 3.4%.

There was no sign yet in the figures of the latest evidence Irish manufacturing could be facing into a tougher times.

The Investec Ireland purchasing managers’ survey for February published earlier this week suggested Irish manufacturing expanded at a modest pace only last month.