IBEC welcomes manufacturing output figures

Industrial output grew by a strong annual 9.1% in March, but the first quarter figures recorded a much more modest 2% rise, according to the latest figures released by the Central Statistics Office today.

Commenting on the figures, IBEC chief economist David Croughan said: "The March data was surprisingly strong and a very welcome bounce back from the weak February figures.

"The high-tech sector recorded particularly strong annual growth of 10.2% in March. In spite of the global slowdown, the electrical and optical equipment sectors have performed exceptionally well, growing by 6.7% on an annual basis in the first quarter and by a quarterly seasonally adjusted growth of 5.5%."

"The traditional sectors, however, remained weak, with output declining by an annual 1.7% in the first quarter, although making up some ground on the poor final quarter figures of 2007.

"It is clear that the global slowdown and the strength of the exchange rate are having a negative impact on traditional industry. Apart from drink concentrates, the rest of the food sector was well down on the first quarter of last year."

He added that the wood sector was suffering from the weakness of the construction sector in both Ireland and the UK, and the UK market was even more difficult because of the weakening of sterling.