Industrial production was up more than 12 per cent in the first four months of the year leading to a much-needed boost for the economy.
At a time of uncertainty in the housing sector, the Irish Business and Employers Confederation (Ibec) said the figures augured well for the year.
Senior Ibec economist Fergal O'Brien was confident despite figures released by Ulster Bank which revealed house construction activity decreased last month.
"This is the strongest start to the year from industry since 2000 and augurs well for the performance of the traded sectors of the economy in 2007.
"Given the slowdown in the housing sector it is critical that other sectors of the economy perform well in order to maintain healthy economic growth," Mr O'Brien said.
He said that while competitiveness had been eroded in recent years, a buoyant global economy and economic recovery in the EU were helping the industrial sector.
"Global trade grew by 9 per cent last year and the outlook remains favourable for 2007," said Mr O'Brien.
Total industrial output was up 12.2 per cent in the first four months of the year, with the modern sector ahead by 15 per cent and the traditional sector growing by 5.5 per cent, according to the Central Statistics Office figures.
