Source: CSO

Annual Irish manufacturing production in November 2009 was 9.1% lower than in November 2008, according to the CSO.

The sectors contributing most to the change in production were: Computer, electronic and optical products (-36.1%) and Food products (-12.5%). The seasonally adjusted volume of industrial production for Manufacturing Industries for the three month period September to November 2009 was 3.1% lower than in the preceding three month period.

The “Modern” Sector, comprising a number of high-technology and chemical sectors, showed an annual decrease in production for November 2009 of 3.7% while a decrease of 17.7% was recorded in the “Traditional” Sector.

The seasonally adjusted industrial turnover index for Manufacturing Industries was 3.5% lower in the three month period September to November 2009 when compared with the preceding three month period.

On an annual basis turnover was 22.4% lower when compared with November 2008, reflecting the fall in prices and exchange rate changes.

IBEC Chief Economist David Croughan said: “Taking the year as a whole, output in the 11 months to November was down only 1.8% compared with the same period of 2008, which is a creditable performance when compared to the much greater downturn in activity in many other advanced economies.

"The modern sector, comprising mainly pharmaceuticals and computers and electronics, recorded an annual increase of just over 6% in the 11 months to November.  This strong performance was mainly due to a 22% increase in pharmaceuticals, while computer and electrical equipment output fell by 31%. Although the CSO does not publish output figures for the medical devices sector, export performance suggests that output growth in this sector was solid.

“The traditional sectors remained weak throughout the year, recording an annual decline of close to 15%. Output in the food sector was down 4%, but this was compounded by price reductions, which saw the value of output fall by 7%. This demonstrates the need to direct more resources to the exporting sectors, which have had to contend with both a global slowdown and a strong euro.

"The Temporary Employment Subsidy  and Employers’ PRSI exemption for people employed from the Live Register was of some help to these industries, but more is needed to counter the competitive losses resulting from the weakness of sterling."