Manufacturing production for September 2008 was 4.3% higher than in September last year, new figures from the Central Statistics Office show.
The main contributor to the annual increase was the basic chemicals sector, which increased by 42%.
The 'modern' sector, comprising a number of high-technology and chemical sectors, showed an annual increase in production of 9.1%, while a decrease of 7.3% was recorded in the 'traditional' sector.
The seasonally adjusted volume of manufacturing production overall for July to September 2008 was 1.5% higher than in the preceding three month period.
The seasonally adjusted industrial turnover index for manufacturing industries was 0.2% higher from July to September 2008 when compared with the preceding three month period. On an annual basis turnover was 0.8% lower.
Commenting on the figures, Alan McQuaid of Bloxhams pointed out that output developments in the chemicals sector tend to be volatile due to a small number of large companies dominating the industry, so that fluctuations in output in any one firm can have a large impact on the overall chemicals industry.
'The usual caveat with chemicals is that, while it might make a significant contribution to value added in manufacturing, its impact on domestic output and employment tends to be lower,' McQuaid said.
He predicts that industrial/manufacturing output will be 2% higher on average this year than in 2007, but 'given the sustained difficulties in both domestic and international economies, a further slowing of growth in manufacturing production to 0.5-1% is on the cards next year'.
IBEC Chief Economist David Croughan said: 'Traditional sectors are clearly in trouble, with output for the first nine months of the year falling by an annual 3.7%, with the weakness particularly evident in the second and third quarters.'
'Food output is down 4.6% in the first nine months, beverages are down 9.2% and wooden products are down 25.5%,' he said.
'Clearly traditional sectors are feeling a sharp slowdown in demand for their products as global consumers retrench and building-related activity grinds to a halt.'
