IRELAND’S INDUSTRIAL OUTPUT has jumped ahead of the European pack as better-than-expected figures across the region fuel hopes of a return to good economic times.
The republic recorded the biggest boost in industrial production of any European country in July – up 11.3% on the previous month and 17.6% compared to the same month in 2013, according to the latest Eurostat numbers.
But the increase follows a series of volatile months for the industrial economy, which recorded a monthly drop in output of 19.9% for June.
The Central Statistics Office predicted the latest boost in Irish factory figures in its last set of numbers, which reported a huge lift in output from the country’s high-tech and chemical sectors.
The European scene
July production outputs across the eurozone were up 1% and the figures were 0.7% higher for all of Europe.
The increase comes after a 0.3% fall in eurozone industrial production in June and stagnant economic growth, leading the European Central Bank (ECB) to a shock interest-rate cut last week in an attempt to spur some activity.
Don’t get carried away yet
ING senior eurozone economist Martin van Vliet said “all is not well for the industrial sector” despite the latest, positive figures.
“Production remains more than 10 percent below its pre-crisis peak and the recent weakening in the industrial surveys shows that manufacturers are finding life more challenging, which is not surprising given the tensions and sanctions between Russia and the west over the crisis in Ukraine and the slowdown in demand from some EM (emerging market) economies,” he said.
READ: “Exceptional” performance makes Ireland “the fastest-growing economy in Europe”
READ: ECB announces negative rate in bid to fight deflation
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