Industrial production up 32.3 per cent over year to May

Industrial production rose by 32.3 per cent on an annual basis, but was down 2.5 per cent in May, according to new figures from the Central Statistics Office (CSO).

The seasonally adjusted volume of industrial production for manufacturing industries from March to May was 17 per cent higher than the preceding three months.

There was a 1.3 per cent increase in the industrial turnover index for manufacturing industries in May, compared to April,while turnover was up 18.9 per cent versus the same month a year earlier.

The ‘modern’ category, comprising a number of high-tech and chemical sectors, showed a 0.7 per cent decline in production during May. Production in the ‘traditional’ sector was down 0.8 per cent.

Alan McQuaid, chief economist at Merrion Capital, said the latest industrial output figures released this morning paint a dramatically more positive picture of the sector in recent times than previously.

Merrion predicts that manufacturing output for the year as a whole will be 25 per cent higher than 2013, following a decline of 1.5 per cent last year.

Davy described the latest production data as good news, but said the 32.3 per cent in manufacturing output probably overstated the true improvement in conditions. It said the exceptionally strong growth rates probably reflect volatility and highlight the potential for further revisions later on in the year.