Economic numbers in Ireland

Annual Irish production for Manufacturing Industries for March 2011 was 5.5% lower than in March 2010 .

The Central Statistics Office said that the most significant changes were in the following sectors: Basic pharmaceutical products and preparations (-8.7%) and Beverages (-7.6%). The seasonally adjusted volume of industrial production for Manufacturing Industries for the three month period January 2011 to March 2011 was 0.5% 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 March 2011 of 7.4% and an decrease of 1.1% was recorded in the “Traditional” Sector.

The seasonally adjusted industrial turnover index for Manufacturing Industries was 2.1% lower in the three month period January 2011 to March 2011 when compared with the preceding three month period . On an annual basis turnover was 3.4% higher in Quarter 1 when compared with the corresponding period last year.

Monthly production data is volatile and the monthly index was down 1.3% while the quarterly level fell 0.5%. It does affect the national accounts data and we don’t need any downsides.

Employment in the Modern Sector was down about, 1,000 in 2010 to 65, 000 while it rose by about 1,500 in other industrial sectors to 135,000

The ESRI said in its quarterly report issued today that modern sector exports (corresponding to Chemicals, some part of Machinery and Transport equipment and Miscellaneous), which are primarily produced by multinationals, account for the bulk of merchandise exports. The ESRI estimates that the value of these exports increased by 4% from 2009 to 2010, while all other exports increased in value by 12.5%. In effect, the growth rate of non-modern exports exceeded that of modern sector exports. These other exports are produced in the main by indigenous and traditional firms. Table 1 shows these growth rates; for example, food exports (the value of live animal exports is very small) increased by 11.2%, while beverage exports rose by 9.9% and similar increases were recorded by other traditional sectors.

This suggests that traditional sector firms have increased output which has gone into export sales and was facilitated by the improvement in competitiveness over the past three years and by an improvement in other costs relative to competitor countries. The economists say this is the classic ‘expenditure shifting’ that governments hope for when reducing domestic demand to correct a payments deficit or when correcting a budget deficit leads to a reduction in domestic demand.