The “modern sector” of Ireland’s economy, encomassing dominant industries such as pharma and IT, showed a subtle improvement in production by nearly 6% year on year during the quarter from March to May. Prior to this, the sector experienced a significant reduction in output by 21% on an annual basis over the three-month stint from December to February.
The Central Statistics Office (CSO) data highlighted a contrast: while the profusion in manufacturing industries went down by 9.6% in comparison to the past quarter, there was a marginal upturn in the modern sector. Conversely, turnover also hit a low, with a decrease of about 4% when compared to the Dec-Feb quarter.
Statistician Colin Cotter attributed this downward trend to the varying results between the sectors under observation. With the modern sector showing a minor upward movement, the traditional manufacturing sector still maintained its annual increase, achieving an 11.3% rise over the three-month period.
From the year-on-year perspective, the sector surged slightly by 7% from March to May, depicting an enduring rise in manufacturing on a monthly basis, gaining 5.8% in May 2024.
Mr Cotter, in his note, advised CSO observers to adopt a long-term perspective to analyse the indices due to the potential fluctuation that might take place within quarterly months.
The presence of extensive contract manufacturing, which involves outsourcing production to an external party, also contributes to the unpredictability of the industrial production figures in Ireland.
Despite worries about corporation tax revenue, May’s data exhibited solid year on year growth. The business tax intake, which has seen a steady rise since 2014, amounted to €3.6 billion in May, displaying an annual increase of 30%. This progression was extended into June, with returns of nearly €6 billion, showcasing a 38% expansion relative to 2023.