New figures from the Central Statistics Office show that industrial production rose by 10% in October compared to the previous month.
On an annual basis, the CSO figures show that industrial production jumped by 38.5% in October compared to the same month last year.
Today's figures show that the modern sector - which is made up of a number of high-technology and chemical sectors - showed a monthly rise of 9.5%. The sector was up 49.1% in the year after a revised annual rise of 27.7% in September.
The CSO noted that chemicals and pharmaceuticals recorded a huge annual increase of 90.7%, which analysts said reflected positive base effects as a result of expiry of patents in 2013.
Production in the traditional sector increased by 3.5% in October, while the sector saw an annual increase of 17.3%. This marked the seventh annual increase in a row and reflected the improving economies in the UK and a recovery in sterling.
Commenting on today's figures, Merrion economist Alan McQuaid said they underline how well the Irish economy is doing compared to the rest of the euro zone, while they also highlighted the importance of the Foreign Direct Investment sector in terms of a growth driver.
Mr McQuaid said he expects the global economy to pick up speed in the coming year and demand for Irish goods in general should increase as a result, with currency developments, particularly in relation to the euro/dollar a huge plus.
"Ireland is better placed than most to take advantage of an upturn in the world economy," he added.
But he cautioned of the importance of the economy remaining competitive, something which IDA Ireland has recently pointed out. It said that any loss of competitiveness would have a negative impact on the levels of foreign direct investment here.
