INDUSTRIAL production surged in July with experts predicting manufacturing will make a strong contribution to economic growth.
Production rose 12.8pc in the month and was up almost a fifth on the year, according to the latest data from the Central Statistics Office (CSO).
Analysts noted the sharp pick-up was largely driven by the pharmaceutical sector, suggesting the drag from the so-called patent cliff is waning.
“More encouragingly for the domestic economy, output continues to expand in the labour-intensive traditional sector,” said David McNamara, an analyst with Davy Stockbrokers. “Output is up 6.5pc on the year, helped by a pick-up in the foods sector. Industry now looks set to make a strong positive contribution to Irish GDP growth this year.”
Industrial production volumes were up 12.8pc in July, a 19.9pc rise on the year. The ‘modern’ sector, comprising a number of high-technology and chemical sectors, showed a monthly increase in production for July 2014 of 11.4pc. There was a monthly increase of 4.7pc in the so-called ‘traditional’ sector. In the pharmaceutical sector output was up 38.4pc on the month and 44.5pc on the year.
Alan McQuaid, of Merrion Stockbrokers, said that with global economy set to gather speed, the will be more demand for Irish exports, while Fiona Hayes of Cantor Fitzgerald said the negative impact of the pharma patent cliff was waning.