Official figures show that the economy continued to grow strongly in the third quarter of this year.
Gross domestic product (GDP) expanded at an annual rate of 7.7%, the fastest rate for five and a half years, while gross national product (GNP) grew by 5.4%. GNP excludes the profits from foreign-owned companies. GNP growth was sharply lower than the 9% recorded in Q2.
A breakdown of the figures from the Central Statistics Office shows that consumer spending growth slowed in Q3 to 4.5% from around 7% in the previous two quarters.
But capital investment grew by 8.2%, bouncing back from a drop of 3.9% in the second quarter. Industrial output growth also accelerated to 7.8%. Net exports were also €1 billion higher than in the same quarter last year.
Separate CSO figures showed a small deficit of just under €1.2 billion in the current account of the balance of payments in the third quarter. The deficit for the first nine months of the year is more than €1 billion higher than a year earlier at €4.9 billion, mainly because of a fall in the trade surplus linked to an increase in imports.
Davy Stockbrokers attributed the slowdown in GNP growth to weak consumer spending on services, adding that a recovery in multi-national profits meant GDP growth was much higher. On the investment side, Davy said machinery and equipment investment was stronger, but building growth moderated.
IIB economist Austin Hughes said the figures were better than expected. He said the details were encouraging, as manufacturing output was now growing faster than construction and exports were strengthening.
Bloxham's Alan McQuaid said GDP and GNP should both expand by 6% this year, with a similar performance next year.
