Ireland: Industrial output records quickest growth since November 2023 in March
Latest reading: Industrial output expanded 14.6% in month-on-month seasonally adjusted terms in March, which was above February’s 11.5% increase. March’s print marked the best reading since November 2023.
Looking at the details of the release, modern sector production increased at a slower pace in March, while traditional sector output rose at a faster pace. The modern sector’s output tends to be volatile due to the presence of multinational-dominated industries, such as chemicals, pharmaceuticals and computers and electronics.
On an annual basis, overall industrial production rose 46.6% in March, significantly above February’s 34.9% expansion and marking the best result since October 2022. Moreover, the trend improved, with the annual average growth of industrial production coming in at 6.5% in March, up from February’s 2.7%.
Panelist insight: EIU analysts said:
“If pharmaceutical products remain excluded by newly announced US tariffs, Ireland’s growth will not be heavily affected by them. Nevertheless, trade and geopolitical uncertainty will probably slow down foreign direct investment (FDI) into the country, which could slightly dampen growth in the forecast period.”