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Concerns ease as industrial production rises


Alan McQuaid

Alan McQuaid

Alan McQuaid

Industrial production in Ireland posted a strong gain of 14.8pc year-on-year in November.

The figure had contracted by 6.4pc in October, the third such month in which the reading was negative.

However, the sector returned to positive territory in November, jumping by 17.1pc compared to the previous month.

In the three months from September to November of last year, industrial production rose by 3.9pc compared to the same period in 2015.

The modern sector, which includes pharmaceuticals and IT companies, rose by 16pc from October, and 16.8pc year-on-year.

"The figures suggest some easing of the concerns that were evident in the aftermath of Brexit. Certainly indigenous Irish exporters have been helped in recent months by the recovery in the value of sterling," Alan McQuaid, of Merrion Capital, said.

Mr McQuaid noted Irish industrial figures are notoriously volatile owing in large part to the activities of multinational firms.

"The reality is we are at the mercy of these companies. There doesn't appear to be any prospect of them leaving any time soon. Obviously, the big risk to that is if Trump follows through on bringing US companies back home. I would be more concerned with the effect that policy would have on attracting new companies to Ireland," he said.

Irish Independent