Output from manufacturing companies was 6 per cent lower between March and May than it was between December and February, the latest figures from the Central Statistics Office (CSO) show.

On an annual basis, production levels fell by 6.1 per cent in May when compared to May 2006.

Within this, the technology and chemical sectors showed an annual decrease in production for May of 9.3 per cent.

An increase of 4.1 per cent was recorded in the remaining "traditional" sector.

Alan McQuaid, chief economist with Bloxham Stockbrokers, said strong global economic growth should buoy demand for Irish goods over the coming year, although he highlighted possible dangers in inflation trends.

He forecasts an increase in manufacturing production of up to 9 per cent this year, boosting GDP.

In a separate release issued yesterday, the CSO said average weekly earnings for full-time workers in distribution and business services rose by 5 per cent to €697.79 in the year to March.

The sector with the highest earnings within this was post and telecoms, where average weekly earnings were €888.40.

The lowest wages in the group came for accommodation and catering employees, who earned weekly pay of €423.37 in March this year.