Exports recovered strongly in August, according to new figures, indicating the industry may be benefiting from the international upturn. Seasonally adjusted exports reached €7.38 billion during the month, 6 per cent up on the same month last year.

Exports during August were also up some 6 per cent on the previous month, the largest monthly rise since February in what has been a volatile series.

The figures also showed a strong rise in imports, reflecting both industrial recovery and rising consumer demand. Monthly imports were €4.35 billion, which was 12 per cent up on the same month last year. The monthly trade surplus of exports over imports was €3.03 billion.

The figures were given a "cautious welcome" by the Minister for Trade and Commerce, Mr Michael Ahern, who said that exports in the January to July period were running 4 per cent ahead of the same period in 2003. Exporters were "more than holding their own", he said and this was encouraging given the relatively high value of the euro against the US dollar and sterling.

A higher euro value makes it more difficult for exporters to sell into the UK and US markets as it cuts their receipts in euro terms. An analysis of the latest figures, undertaken by IBEC, suggests that the actual volume of exports in the first eight months was running 7 per cent ahead of the same period last year.

Davy Stockbrokers, in a comment on the figures, said that goods exports had recovered significant in the third quarter of the year. Data from earlier in the year suggested that service exports were growing even more quickly, the brokers said.

"Equally, the pace of import growth signals that domestic demand remains robust."