ANNUAL PRODUCTION in the manufacturing sector rose 4.3 per cent in June 2009, according to figures from the Central Statistics Office.

The growth was driven by a 35 per cent rise in output in the pharmaceutical industry. However, production in the computer, electronic and optical products sector fell 17.7 per cent in the same period.

The “modern” sector, which includes a number of high-technology and chemical business areas, showed a 16 per cent rise in production for June 2009. In contrast, the “traditional” sector fell 16.6 per cent.

Turnover for manufacturing industries was 0.6 per cent lower when compared with June 2008.

Seasonally adjusted figures for the three-month period from April to June showed the volume of industrial production fell 2 per cent compared to the preceding three-month period. The adjusted industrial turnover index for the same three-month period showed a 1.9 per cent decline.

Separately, a new survey on manufacturing in the EU said the outlook for the sector was turning positive. The business outlook survey for European manufacturing, produced by Markit Economics for KPMG, questioned about 3,700 manufacturers across the region on their thoughts on future business conditions.

It said confidence in Ireland is “relatively muted” but is more positive than six months ago.

“Irish business has particular concerns about profitability and weak domestic demand and it is difficult to see this changing in the short term,” says KPMG’s head of consumer and industrial markets in Ireland, Roger Gillespie.

“This report highlights the continuing difficulties faced by Irish manufacturing – however, there are some slight rays of hope in that a small majority of respondents see planned levels of business activity rising.”