Manufacturing output falls in December

Manufacturing output was 5.3 per cent lower on annual basis in December, according to new figures from the Central Statistics Office (CSO).

The biggest decline was recording in the computer, electronic and optical products sector, which was down 41.6 per cent while the biggest rise in output was in basic pharmaceutical products and preparations which rose 24.8 per cent during the month.

The "Modern" sector, comprising of a number of high-technology and chemical industries showed an annual decrease in production for December 2009 of 4.1 per cent. The "Traditional" sector recorded a 7.7 per cent decline in output.

The seasonally adjusted industrial turnover index for manufacturing industries was 7.1 per cent lower in the three month period ending December 31st compared to the same quarter a year earlier.

In addition, the seasonally adjusted volume of industrial production for manufacturing industries for the fourth quarter of 2009 was 8.7 per cent lower than the previous quarter.

On an annual basis, turnover was 18.5 per cent lower when compared with December 2008.

Business group Ibec said the latest figures highlight the ongoing challenges faced by the manufacturing sector.

"It is clear from the data that the indigenous sector in particular is in need of targeted, temporary stimulus measures in order to overcome this exceptional global crisis," said Ibec economist Reetta Suonpea.

She said the turnover decline highlighted the price pressures that firms are experiencing and emphasised the need to reduce the cost of doing business in Ireland.