New figures from the Central Statistics Office show that production levels for the country’s manufacturing industry rose by 12.8% in July from June.
The CSO figures show that on an annual basis, industrial production in July jumped by 19.9% compared to the same time last year.
The CSO said that the “modern” sector, which is made up of a number of high-technology and chemical sectors, showed a monthly increase in production for July of 11.4%.
It noted that the chemicals and pharmaceuticals industries recorded an annual increase of 44.5%.
There was also a monthly increase of 4.7% in the “traditional” sector in the month, while the sector grew by 6.5% in the year, the fourth annual rise in a row.
Merrion economist Alan McQuaid noted that improvements in the UK economy and a recovery in sterling are clearly a positive development on this front.
The economist also said that with the global economy set to gather speed, demand for Irish goods in general should start to pick up.
“Ireland is better placed than most to take advantage of an upturn in the world economy. The industrial output figures also clearly fit better with the Irish manufacturing PMI, which has been in expansionary territory for the 15 months up to June, and indeed posted its strongest reading in 15 years last month,” Mr McQuaid said.
Commenting on today’s figures, Davy analyst David McNamara said that industry now looks set to make a strong positive contribution to Irish GDP growth in the second quarter.
“Indeed, the recovery in the traditional sector is now outperforming a slowing European cycle. This is helped by Irish industry’s reliance on the UK market,” he added.