Production in the manufacturing sector here fell by 5 per cent in the second quarter as the multinational export surge linked to US tariffs continues to unwind.
Activity and exports jumped sharply in the first half of 2025 as pharmaceutical manufacturers in Ireland rushed to stockpile exports in the US in advance of threatened tariffs by US president, Donald Trump.
The trend has tapered off this year, resulting in a downturn in production and exports.
Central Statistics Office (CSO) figures, published on Monday, show that production in manufacturing industries here increased by 4.5 per cent between April and June when compared with the previous three-month period. But on an annual basis it was down 5 per cent.
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The CSO advised “that analysts take a longer-term view of the indices because of the variability that can occur within the given months of a quarter”.
The highly globalised “modern sector”, which includes the chemical, pharmaceutical and computer and electronic sectors, experienced an annual fall of 5.4 per cent in industrial production in the second quarter.
Annual production in the traditional sector decreased by 5.2 per cent.
By value, the CSO said turnover between April and June in manufacturing industries was up by 6.8 per cent when compared with the previous three-month period, while an annual decline of 7.2 per cent was recorded when compared with the same three-month period in 2025.
The Irish economy grew by 12 per cent in traditional GDP (gross domestic product) terms last year on the back of the front-loading of exports.
Separately investor morale in the euro zone returned to positive territory in August, helped by a sharp improvement in current economic conditions and continued confidence in the recovery, a survey showed on Monday.
The Sentix index for the euro zone rose to 0.9 points in August from -3.1 in July. The index has now increased for four straight months and reached its highest level since February 2026
Sentix said the improvement was driven mainly by a sharp recovery in investors’ assessment of current conditions, while expectations also improved. – Additional reporting by Reuters
