| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy


Finfacts changes from 2015

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Jan 7, 2015 - 10:30 AM


Irish Economy: Industrial production up 38.5% in 12 months - employment falls!!
By Michael Hennigan, Finfacts founder and editor
Dec 5, 2014 - 4:15 PM

Email this article
 Printer friendly page

Irish Economy:  Production for Manufacturing Industries for October 2014 was 10.0% higher than in September 2014, according to the CSO today. On an annual basis production for October 2014 increased by 38.5% when compared with October 2013. The seasonally adjusted volume of industrial production for Manufacturing Industries for the three months August 2014 to October was 3.8% higher than in the preceding three month period - this surge in production seems ridiculous when jobs in industry have fallen in the past year.

The “Modern” Sector, comprising a number of high-technology and chemical sectors, showed a monthly increase in production for October 2014 of 9.5%. There was a monthly increase of 3.5% in the “Traditional” Sector.

There was an increase of 8.9% in the seasonally adjusted industrial turnover index for Manufacturing Industries in October 2014 when compared with September 2014. On an annual basis turnover increased by 34.6% when compared with October 2013.

The latest official jobs data published last week show that jobs in industry grew by 3,000 in Q3, but they were down 3,000 in the 12 months to September 2014.

Last week, the Fiscal Advisory Council highlighted that contract manufacturing overseas, which is booked in Ireland for tax avoidance purposes, accounted for 43% of the rise in GDP (gross domestic product) in the first half of 2014.

43% of rise in H1 2014 GDP from manufacturing overseas - Irish Fiscal Council

Irish Economy 2014: Tourism activities account for half the jobs added since Q1 2011

The idiot/ eejit's guide to distorted Irish national economic data

So Irish industrial production data includes for example the output of Dell's PC plant in Poland!

David McNamara, economist at Davy, comments - - "Industrial production data for October show output surging in the second half of the year, with industry set to bounce back strongly in 2014 following a 3% decline in 2013. In October, output was up 10% on the month and 38.5% on the year. The broad sector breakdown shows both modern and traditional sectors contributing to growth. Modern sector output, largely pharmaceuticals, was up 9.5% month-on-month (mom) and 49% year-on-year (yoy), while traditional sector output was up 3.5% mom and 17.2% yoy.

This suggests that industry and exports made a further strong contribution to Irish GDP growth in H2, ahead of the Q3 release next week. In the year to Q2, GDP growth was up 7.7%, helped by strong recoveries in domestic demand and net exports. One notable feature of export growth in the first half of the year was the strong positive impact of so- called ‘contracted production’. This involves Irish-based firms contracting production in a second country, with goods shipped to a third country. Although not captured in the monthly trade data, the activity is counted in Ireland’s exports and monthly industrial production numbers, adding a further layer of uncertainty to GDP numbers.

The potential sector or firm-specific nature of this type of activity means that the positive impact on net trade in H1 could quickly unwind and that the final out-turn for GDP is therefore uncertain. Nonetheless, the industry data so far in H2 suggest no let-up in the pace of growth seen in H1, with a broad spread of sectors contributing to the recovery in output. Eight of the nine largest sectors of industry have posted annual growth in the three months to October, led by the pharmaceuticals sector."

Related Articles


© Copyright 2015 by Finfacts.ie

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March