Irish Industrial Production: Modern Vs Traditional Sectors

Recession continues in Ireland as Industrial production, announced today, declined 8.0% from 106.2 (2005=100) in Octoberto 97.7% in November. Ireland makes a distinction between its traditional industries and those of relatively recent origin. The "Modern" sector includes the following NACE industries reproduction of recorded music (182), manufacture of chemicals and chemical products (20), manufacture of basic pharmaceutical products and pharmaceutical preparations (21), manufacture of computers, electronic and optical products (26), manufacture of electric equipment (27) and medical and dental instruments and supplies (325). All the rest of the industries make up the traditional sector.

Month to month production in the Modern Sector has been volatile but has shown little trend. For instance production in the Modern sector declined 10.5% in November, but was down only 3.8% from a year ago. Production in the Traditional sector, on the contrary, has shown a definite downward trend. Although production in the Traditional sector was down only 2.2% in November, it was 17.7% below the year ago level. The attached chart shows total Industrial Production for Ireland and production in the Modern and Traditional sectors. The relative stability of production in the Modern Sector and the sharp decline of production in the Traditional Sector are apparent.