Irish industry is benefiting from stronger international growth, new figures indicate, with production in March running 6 per cent ahead of the same month last year.

While output showed a monthly rise of 1.9 per cent, however, weakness in some of the more modern sectors is holding back overall growth.

The latest figures from the Central Statistics Office show a strong rise in March in what has been a volatile series in recent months. Having dipped in January and February, production recovered in March.

During the month the "modern" sector dominated by pharmaceuticals, chemicals and electronics performed strongly with a monthly rise of 4.2 per cent compared to a fall of 3.4 per cent for the rest of industry.

A fall-off in production in chemicals and computers in the early months of the year, however, means output in the modern sector remains well below the levels at the end of 2003.

Goodbody stockbrokers, in an analysis of the figures, says the less volatile three-month average annual change shows industrial production activity slowing somewhat.

Using this measure, total industrial production has slowed from 15.5 per cent annual growth last December to 4.3 per cent in March.

This is primarily due to developments in the production of chemicals products, according to Goodbody economist Mr Dermot O'Leary.

In this category, annual growth on a three-month average basis has slowed from 19.2 per cent in December to only 1 per cent this month, he points out.

The important office machinery and computer sector also recorded a fall off in the early months, with production in the first three months of the year running 12.8 per cent below the previous three months, though still 8.1 per cent ahead of the same period last year.

While production growth in traditional sectors remains lacklustre - and is declining in some areas - the food sector is performing strongly.

The figures show production of food products running 11.2 per cent higher in January-March compared to the same three months in 2003.

The "other foods" sector is particularly strong, up 26.7 per cent.