February 16, 2011
By Staff Reporter
Overall, the Irish Times reports, the figures suggest that a sustained recovery in growth had not taken place by last autumn, although economists remain optimistic that an upturn in international growth will lead to a pick-up this year.
The latest quarterly national accounts, published yesterday, show that gross national product (GNP) in the third quarter was 0.4 per cent down on the previous three months, after seasonal adjustment. While the CSO warns that too much emphasis should not be put on quarterly trends, the performance contrasted with a 2.6 percent rise in the second quarter.
Examination of the main components of the economy shows no sign of a major upturn in the third quarter, with the output of most sectors little changed. There is some suggestion of a recovery in investment levels, with gross domestic fixed capital formation – boosted by strong house-building – running 5.8 percent ahead of the previous quarter.
While investment in the third quarter was 2 percent down on the same period in 2002, the CSO says that it would be slightly up when the impact of some major aircraft purchases in 2002 was factored out. House-building was running 20 percent ahead of 2002 levels, it estimates, leading to an overall rise in building despite a fall-off in construction spending in other areas.
There was a quarterly 3.4 percent pick-up in imports, seen by some analysts as a sign of a recovery in demand and a signal that industry may be gearing up to meet future demand by restocking on inputs.