Ireland: Irish industrial production fastest in European Union
November 9, 2010
In September, industrial production expanded a seasonally adjusted 7.9% over the previous month, which contrasted the 12.7% contraction registered in August (previously reported: -13.6% month-on-month). The improvement over the previous month was mainly the result of robust manufacturing output, which increased 11.4% in comparison to the 15.6% drop seen in August. Within the manufacturing sector, pharmaceuticals and food were the key drivers behind the strong growth seen this month. Going forward, the performance of Irish manufacturers will mostly depend on the external demand, which is likely to sustain the current positive trend over the coming months. On an annual basis, industrial production expanded 10.9%, the same rate of expansion registered in August (previously reported: +9.6% yoy). The trend continues to point upwards with the annual average variation in industrial production rising from 0.7% in August to 2.1% in September, highest level in two years. Consensus Forecast panellists expect industrial production to expand 1.4% for the full year, which is up 3.5 percentage points from last month's forecast. Next year, participants expect industrial production to inch down to 0.8% growth.