Turnover in manufacturing industries was down 11.1 per cent from November to January when compared with the same three-month period one year ago, data from the Central Statistics Office (CSO) shows.
The dip was recorded despite production being 1.7 per cent higher over the same period. Turnover was down 7.8 per cent when compared with the previous quarter, while production was down 5.5 per cent.
The highly globalised “modern sector”, which includes the chemical, pharmaceutical, and computer and electronic sectors, saw an annual increase of 2.8 per cent in production.
However, production in the traditional sector, which includes all other manufacturing industries, fell by 4.8 per cent over the same period.
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The data covers manufacturing activity undertaken on behalf of industrial enterprises with headquarters based in Ireland.
The CSO said it should be noted they include both manufacturing in Ireland and manufacturing abroad, either by foreign subsidiaries or by foreign subcontractors.
“The multinational sector in particular is highly globalised, conducting much of its manufacturing activity abroad,” it said.
Data from AIB last week showed manufacturing output growth rebounded to its highest since July last month, supported by a rise in new work and additional staff recruitment.
The bank’s latest PMI pulse check of the sector said exports markets were a source of order book expansion in February as total new business from abroad improved for the first time in three months and to the greatest extent since March last year.
Goods producers nonetheless faced challenges from supply chain delays and rising purchasing prices, with the rate of cost inflation hitting a 37-month high, the report said.
The headline PMI figure is an indicator of performance in the sector, and is derived from indicators across a range of factors and challenges facing manufacturers. Any figure greater than 50 indicates overall improvement of the sector, while any figure below signifies contraction.
At 53.1 in February, up from 52.2 in January, the rate reached its highest level since July and signalled a “solid improvement” in overall business conditions across the sector.
