The latest figures from the Central Statistics Office show that production in the country's manufacturing industries in November fell by 3.4% compared to the same time in 2010.
The CSO says that production levels slumped by 10.3% in November from the previous month.
Today's figures show that the modern sector, which is made up of high technology and chemical sectors, showed a monthly decrease of 13.9%. There was also a fall of 1.7% in the traditional sector.
The CSO also said that the seasonally adjusted volume of industrial production for manufacturing industries for the three months from September to November rose by 1.6% than the preceding three month period.
Davy economist Conall Mac Coille said the 10% fall in Irish manufacturing production in November could reflect the impact of a contracting European economy.
But he added that the industrial production data are extremely volatile with double-digit monthly declines not uncommon in the figures even during relatively benign economic circumstances.
''We therefore cannot infer too much from today's industrial production data for November,'' he said.
Bloxham economist Alan McQuaid said the figures appeared, on the surface, somewhat disappointing. "However, given the unfavourable global economic backdrop they are in our opinion quite respectable nonetheless," he added.