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Irish industrial production surges 33pc year-on-year

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Industrial production surged by a third in November compared to the same month last year, paving the way for the fastest pace of growth in the sector for 17 years.

Output was up 4pc in November, but jumped a massive 33pc year-on-year.

Analysts said the data pointed to a surge in output in the second half of last year.

"All in all, Ireland's manufacturing sector is set for its fastest pace of growth since 1998," said David McNamara, analyst with Davy Stockbrokers.

"A flat December would leave output up 20pc in 2014. Much of this is related to the multinational sector, with little feed-through to the real economy.

"However, the 'traditional' sector is also set for the fastest pace of growth since 2000 at about 9pc for 2014, with surveys pointing to continued growth in 2015."

The data from the Central Statistics Office shows that the so-called modern sector, made up of a number of high-technology and chemical sectors, showed a monthly increase in production for November 2014 of 9.3pc. There was a monthly decrease of 4.4pc in the more employment-intensive traditional sector.

In the year-to-date, industrial production has now expanded by 22pc on 2013, driven by a bounce-back in the pharma-dominated modern sector, which was up 33.9pc, and an 8.1pc rise in the traditional sector.

"Looking ahead, the manufacturing PMI points to continued growth in early 2015, with employers taking on new recruits at the fastest pace in 15 years, signalling positive output expectations for the year ahead," Mr McNamara added.

Alan McQuaid of Merrion stockbrokers said the data underlined how well the Irish economy is doing compared with the rest of the Eurozone.

"Based on the figures up to November and on the strong PMI data, we are now looking for manufacturing output for 2014 as a whole to be around 23pc higher than 2013, following a decline of 2.1pc in the previous year," he said.

"Another strong double-digit rise is envisaged for 2015."

Mr McQuaid said that it was crucial that the economy remains competitive as the recovery takes hold.

Separate data from the CSO shows the monthly services sector had a more modest annual rise in November, increasing 5.5pc. But it was down on October by 1.1pc.

Irish Independent