Output rises at fastest rate in a decade

IRISH INDUSTRIAL production rose last year after two successive years of contraction and the pace of expansion was the fastest in a decade, new figures show.

From a recessionary low point at the end of 2009, production soared to an all-time high in July. Over the remainder of the year, output fell back. In December, a small month on month decline, of 1.9 per cent, was recorded on a seasonally adjusted basis.

Davy analyst Conall MacCoille suggested the decline in December might, in part, reflect severe weather experienced during that month.

Over the full year, industrial production rose by 7.8 per cent compared to 2009, according to provisional figures published yesterday by the Central Statistics Office.

“The figures for last year were very impressive . . . even though it was the multinational sector that once again was the main output driver,” said Bloxham economist Alan McQuaid.

Production in the “modern” sector – broadly high technology and chemicals sectors – again accounted for the bulk of the advance in 2010 when compared to 2009. In December, production in this sector was 2.4 per cent down on November.

However, production in the sector was up 23.1 per cent up on December 2009.

Production in the “traditional” sector rose by 1.7 per cent month on month in December. Year on year, it grew by 7.9 per cent.

Figures on the numbers employed in industry, which are not seasonally adjusted, relate to the third quarter of 2010.

They show a small quarter on quarter increase in industrial employment levels and broad stability over the course of the year.

Output in UK production industries rose more modestly than had been expected in December, while output from the manufacturing sector declined slightly. However, the UK’s official statistics body warned that harsh weather may have distorted some readings.

The Office for National Statistics said its Index of Production – of which the single largest component is manufacturing – rose by 0.5 per cent in December from November, with a sharp rise in the electricity, gas and water supply component as homes and business turned up the heat to stay warm.

Manufacturing recorded a 0.1 per cent drop in December from November. The UK office said the coldest weather in a century may have had an effect too, but that it was too early to tell.  – (Copyright The Financial Times Limited 2011)