Industrial activity drops at sharpest rate since July 2023 in April

Latest reading: Industrial output plunged 15.2% in month-on-month seasonally adjusted terms in April, which contrasted March's 14.3% increase. The figure marked the worst reading since July 2023. Modern sector output plunged after surging in the prior two months. The modern sector’s output tends to be volatile—even more so now as Trump’s tariffs wreak havoc on trade flows—due to the presence of multinational-dominated industries, such as chemicals, pharmaceuticals and computers and electronics. On an annual basis, overall industrial production rose 18.0% in April, which was significantly below March’s 47.8% expansion. Meanwhile, the trend improved notably, with the annual average growth of industrial production coming in at 9.6%, up from March's 6.6% reading.

Panelist insight: On Ireland’s pharmaceutical sector—which makes up the largest chunk of the country’s industrial output—Fitch Solutions analysts said: “Geopolitical tensions, particularly with the US, pose risks to the sector's outlook. While pharmaceuticals may be exempt from newly announced US tariffs, uncertainty remains regarding potential changes in US tax policies that could impact profit shifting practices of US-based companies in Ireland. Despite these challenges, Ireland's pharmaceutical sector is well-positioned to capitalise on its strong manufacturing base, favourable business environment and strategic importance in global supply chains.”

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