Manufacturing output fell 13.9 per cent in August, compared to the same month a year earlier, according to new Central Statistics Office (CSO) figures.
The biggest decline was recorded in computer, electrical and optical products which was down 37.1 per cent in August.
The seasonally-adjusted volume of total industrial output for June to August was up 3 per cent compared to the preceding three month period. There was a rise of 3.6 per cent in manufacturing over the same time span.
Inn the first eight months of this year manufacturing output was 1.7 per cent lower than in the same period last year while overall industrial production was down 2.2 per cent on average.
The 'Modern' sector, which comprises of a number of high-technology and chemical industries, showed a year-on-year drop in production for August of 14.1 per cent, while an annual decrease of 12.8 per cent was recorded in the '“Traditional' sector.
Commenting on the figures, Alan McQuaid, chief economist at Bloxham stockbrokers said both manufacturing output and merchandise exports are holding up relatively well despite tough global conditions.
"There is still a good chance that manufacturing production will be marginally higher on average this year than in 2008. But it is the multinational side that is keeping things going, with the home-based industries struggling big time," he said.
"It is hard to see this trend changing in the immediate future, though the cost reductions implemented in the year to date should help to make indigenous companies more competitive going forward, and in a better position to avail of the global economic upturn when it does arrive," he added.
However, employers group Ibec said the latest figures show the difficulties which manufacturers are facing in the current economic environment.
"When you see the volume of Manufacturing production fall by 13.8 per cent but the value of output falling by 23.5 per cent, it gives you some idea of how much manufacturers are reducing prices and how great the squeeze on margins is," said Ibec chief economist David Croughan.
