Exports increase 4% in February

The value of Irish exports increased by 4 per cent in February, while imports decreased by 3 per cent on the pervious month, …

The value of Irish exports increased by 4 per cent in February, while imports decreased by 3 per cent on the pervious month, according to new figures from the Central Statistics Office (CSO).

The value of Irish exports increased by 4 per cent in February, while imports decreased by 3 per cent on the pervious month, according to new figures from the Central Statistics Office (CSO).

This brought the seasonally-adjusted trade surplus in February to nearly €2,500 million, compared with €2,050 million in January. February was the sixth successive month in which the value of exports has grown although the total in February was still lower than the €7,562 million worth of exports in April 2007.

Overall exports to the US declined 10 per cent in the year to January to €1,383, according to the CSO. However, exports to China and Hong Kong saw strong growth of 63 per cent over the year to €235 million. Exports to the UK increased 7 per cent €1,188 million.

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Alan McQuaid of Bloxham Stockbrokers said adverse currency movements were largely behind the fall in US exports

"The problem for Ireland is that the US and UK combined account for around 40 per cent of Irish merchandise exports, so the level of demand in these countries as well as what happens on the exchange rate front will be critical for overall merchandise export performance in 2008."

He noted that the external performance of the economy improved in 2007 with exports of goods and services outpacing export market growth for the first time in a number of years.

Mr McQuaid expects weaker export growth this year reflecting the impact of slower world trade growth as well as continuing pressure associated with the strong euro.

The value of chemical materials and product exports increased by 58 per cent in 12 months to January to €261 million, while the value of petroleum products rose 79 per cent to €41 million over the same period.

The value of computer exports declined 12 per cent over the same period to €888 million.

The CSO also reported today that factory gate prices fell by 1.6 per cent last month compared to a decrease of 0.2 per cent 12 months ago.

This brought the annual rate of decline to 4.3 per cent last month, compared to 3 per cent in February.

Contributing to the annual change was a 16.6 per cent decrease in the price of office machinery while meat and meat products rose by 8.2 per cent over the same period.