August exports recover by 6% to reach €7.4bn

Seasonally adjusted exports were up in August by 6 per cent to €7.4 billion the Central Statistics Office (CSO) reported yesterday.

The figures refer to exports in August compared to July, when the total stood at just over €7 billion. Economists said while the figures were encouraging, exports were still recovering from the sharp falls between May and July.

Imports in August increased from €4.4 billion to €4.5 billion, a rise of three per cent. The main driver of higher imports was oil, computer equipment and cars. The value of petroleum product imports grew by €510 million in the first eight months of the year, representing almost a quarter of the total increase in Ireland's import bill.

The main driver of the export figures were chemicals (up 11 per cent). The two areas that suffered from falling exports were medical and pharmaceutical products.

A note on the figures from Davy Research said: "Net trade may well drag on GDP growth for a third consecutive quarter in quarter three. Exports have not yet fully reflected the rebound in industrial production over the last few months. Even though value of goods exports moved up sharply on a sequential basis in August, it only cancelled out the sharp fall between May and July."

Goodbody Stockbrokers drew attention to the strong export performance from the chemical and related products sector.

However it expressed concern about the second-largest commodity export category - computer equipment. "This sector has continued to suffer significant price declines and has likely played a role in the weak performance thus far this year."

Goodbody pointed out that Irish exports to the US and Britain were down in the year to the end of July compared to the same period of 2004.