Industrial production bounces back

FIONA REDDAN

Activity in Ireland’s manufacturing sector increased by 4.7 per cent in March, buoyed by a strong performance from the high-technology and chemical sectors.

On an annual basis, production increased by 11.5 per cent in the year to March 2014, according to figures from the Central Statistics Office, while in the three-month period January to March, manufacturing output was up 4.8 per cent on the preceding three-month period.

The so-called “modern” sector, which comprises a number of high-technology and chemical sectors, showed a monthly increase in production for March 2014 of 12.7 per cent.

According to David McNamara, an economist with Davy Stockbrokers, the figures provide “tentative evidence that the worst of the patent cliff may now have passed”, with the increase in March entirely accounted for by the rise in the pharma-dominated modern sector.

However, this growth was countered by a monthly decrease of 6.4 per cent in the “traditional” sector, with McNamara pointing to a sharp swing in food and beverages production over the month, which fell by 13 per cent, as contributing to the decrease.

Overall, the positive figures mean that Alan McQuaid, economist with Merrion Stockbrokers, is now forecasting that output in 2014 will be up by 5 per cent on last year.

“After a weather-affected sluggish start to 2014, the indications now are that major developed economies are in the main finding their feet again, which points to increased global demand going forward. And in our view, Ireland is better placed than most to take advantage of that,” he said.