IBEC laments slowdown in manufacturing output

Manufacturing output figures for the month of February have recorded an annual increase of only 1%, compared with 2.3% in January and 10.8% in the last quarter of 2007.

On a seasonally adjusted basis, output fell month-on-month by 0.8% following a January fall of 1.2%.

Commenting on the figures, IBEC chief economist David Croughan said that there had been a marked slowdown in output in the first two months of the year.

"Total manufacturing output growth in the first two months has slowed to 1.6%," he said.

"Output in the modern sector had slowed to a growth of only 3.6% compared with growth in 2007 of 8.7% and traditional sector output had fallen by 3.2%, following a growth of 3.7% in 2007.

"Clearly the global slowdown is influencing demand and now the strength of the euro against both the dollar and sterling is having a particularly harsh impact on traditional sectors.

"Output in food and beverages has fallen by an annual 5.6% and the wood sector by 20% in the first two months of the year. The wood sector was also suffering from the fall in construction activity."

He said that these extremely difficult trading conditions emphasised the need for containing costs and the next wage round had to take countenance of the deteriorating economic climate.