Recession confirmed by CSO report
Thursday, 18 December 2008 20:03
Economic activity in Ireland contracted by almost 5% in the 12 months to the end of September, according to the latest quarterly national accounts from the CSO.
This is the largest contraction in economic activity recorded since quarterly records began.
The figures show that activity in the building and construction sector was down overall by 18.4%.
However, this masks a contraction of 33% in the building of new housing.
The figures also show that investment in the economy overall was down by almost 15% during the year.
However the manufacturing sector bucked the trend in the economy, with output up by 4.3% as a result of a strong performance by multi-national companies based here.
The figures also confirm that the economy has now contracted for a second consecutive quarter, which is considered by economists to be the technical definition of a recession.
However the CSO figures relate to the period before the collapse of the massive US financial institution Lehman Brothers in September and the consequent meltdown in global financial markets.
As a result, analysts are expecting the economic trends will worsen in the months ahead.
- Six One News: David Murphy, Business Correspondent, reports that the CSO figures shows the largest drop since quarterly records began in 1997
- One News: David Murphy, Business Correspondent, reports on the latest data from the CSO confirming Ireland is in a recession
- News At One: George Lee says the latest CSO figures on the economy refer to the period before the latest sterling devaluation
