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Industrial production rises by more than a fifth

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'Automation is eliminating work on an unprecedented scale'

'Automation is eliminating work on an unprecedented scale'

'Automation is eliminating work on an unprecedented scale'

INDUSTRIAL production is up by more than a fifth when compared with the same period last year.

But quarter on quarter, production is down as volume decreased 4.2pc between July and September compared with the previous three months.

The so-called modern sector, which is made up of companies from the technology, chemical and pharmaceutical sectors, had a monthly decrease of 0.5pc.

There was a monthly increase of 0.6pc in the traditional sector.

Davy stockbrokers said the third-quarter fall reflected the volatile modern sector, which is dominated by pharmaceuticals and which dropped 7.5pc in the quarter after enormous advances in the first half of the year.

"Last year, the pharmaceutical patent cliff squeezed profits in the multinational sector and artificially depressed 0.2pc GDP growth; this year, the opposite has occurred," Davy analyst Conall MacCoille said.

"Industrial output has grown by 19.3pc in the first nine months of 2014 compared with the same period last year.

"However, this growth is split between 30pc in the modern sector, dominated by pharmaceuticals, and 4.5pc in the traditional sector. The rapid and volatile expansion in modern sector output will have a limited impact on the domestic economy - in a similar fashion to falls in 2013."

Indo Business