Manufacturing output down 4.4% on an annual basis

Output from Irish-based factories fell 7.8 per cent in May compared to April, on the back of a dip in output in the State’s high-tech and chemical/pharmaceutical sectors.

The latest monthly production figures from the Central Statistics Office (CSO), a key gauge of the economy's underlying health, showed that manufacturing was down 4.4 per cent in May compared to the same time last year.

It was the first annual decline of 2015 and compared with a revised increase of 7.5 per cent in April.

The adjusted volume of industrial production for the three-month period from March to May 2015 was 1.6 per cent higher than the preceding three-month period.

The figures show production in the “Modern” sector, comprising high-technology and chemical sectors, fell by 12.2 per cent in May and 13.2 per cent in the year.

The sub-index for “Traditional” industries showed an increase of 0.6 per cent in the month and 10.6 per cent in the year.

“After a sluggish start to the year, we expect the global economy to pick up speed in the coming months and demand for Irish goods in general should increase as a result, with currency developments, particularly in relation to the dollar and pound a huge plus. Ireland is better placed than most to take advantage of an upturn in the world economy, with the manufacturing PMI in expansionary territory for more than two years running up to June,” said economist Alan McQuaid of Merrion Stockbrokers.

“Following last year’s impressive increase of just over 24 per cent, a further strong showing in Irish manufacturing output is forecast for this year. We expect another robust double-digit increase, which at this stage now looks like being in the 15 to 20 per cent range.”