Ireland: Industrial sector contracts more sharply in December
February 5, 2019
The highly volatile Irish manufacturing industries production index contracted more sharply in December, declining 14.2% in seasonally-adjusted, month-on-month terms. In comparison, the index fell a revised 9.2% in November (previously reported: -7.9% month-on-month). According to the Central Statistics Office (CSO), December’s print reflected a notable contraction in the manufacturing sector—which fell at almost twice the rate as the previous month—and a marked downturn in the traditional sector. The category of tobacco, leather, coke and refined petroleum products, transport equipment, furniture, repair and installation of machinery and equipment recorded the biggest drop. Food products and electrical equipment also saw marked declines.
Industrial production also contracted more severely in annual terms, falling 17.8% over the same month of the previous year in December, following a 11.3% year-on-year drop in November. Meanwhile, annual average growth in industrial output declined to 0.5% in December, down from 1.9% in November.FocusEconomics Consensus Forecast panelists expect industrial production to grow 4.4% in 2019, which is up 0.1 percentage points from last month’s forecast. For 2020, the panel sees industrial production growth slowing to 2.9%.
Author: Nihad Ahmed, Economist