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| Source: CSO |
On an annual basis production for Irish Manufacturing Industries for September 2009 was 0.6% higher than in September 2008. The sectors contributing most to the change were: Basic pharmaceutical products and preparations (+42.1%), Computer, electronic and optical products (-44.4%) and Food products (-11.1%).
The CSO said seasonally adjusted volume of industrial production for Manufacturing Industries for the three month period July to September 2009 was 4.0% higher than in the preceding threemonth period.
The “Modern” Sector," comprising a number of US dominated high-technology and chemical sectors, showed an annual increase in production for September 2009 of 10.9% while a decrease of 17.7% was recorded in the “Traditional” Sector."
The seasonally adjusted industrial turnover index for Manufacturing Industries was 11.4% lower in the three month period July to September 2009 when compared with the preceding three month period. On an annual basis turnover was 11.1% lower when compared with September 2008.
Davy chief economist Rossa White commented:
Some signs of life thanks to global recovery in Q3, but improvement far from uniform
Industrial production has stabilised, but headlines hide significant moving parts
- Irish industrial production increased 3.5% quarter-on-quarter (qoq) in Q3 and is now some 4% higher than the low in Q4 2008.
- But industry is dominated by one multinational sector – basic chemicals – that accounts for one-third of value added. This has proven remarkably defensive during recession, much as it did in 2001-2002.
- Apart from that sector, there hasn't been much to cheer about. Irish-owned industry has been under severe pressure all year due to unfavourable currency trends, especially the weakness of the pound sterling. To put that in context, in the year to Q3 only two of the 22 main sub-sectors – basic chemicals and other manufacturing (medical/surgical/orthopaedic products) – recorded an increase in output.
Q3 sequential trend was better, in line with global turn
- But those sectors saw most of the damage done in Q4 2008 and Q1 2009. Looking at the Q3 numbers, there was some improvement seasonally adjusted compared with Q2. Ten of the 22 sub-sectors joined basic chemicals and medical devices by returning to growth to varying degrees qoq. That reflects an improvement in global demand.
- However, two important and mainly Irish-owned sub-sectors – food and beverages – continue to shrink. They have a big share of indigenous manufacturing, causing what is largely the non-multinational part of industry to decline 3.7% in Q3 qoq.
Elsewhere, Irish savings ratio was 4.2% in 2008
- Institutional sector accounts (non-financial) were released today too for 2008. They show that the net household savings ratio rose to 4.2% in 2008 from 1.7% in 2007. But these accounts tend to underestimate the official national accounts savings ratio released with a lag. We reckon the savings ratio has soared to 12% in 2009.
