The volume of industrial production during the first quarter was up 15.3 per cent compared to the same three-month period a year earlier.
For the month of March 2010, production was 3.1 per cent higher than the same month last year boosted by a rise in production in the pharmaceutical sector, which was up 15.6 per cent.
Computer, electronics and optical product-related production declined 34.7 per cent over the month, the figures show.
According to new figures from the Central Statistics Office (CSO), manufacturing output was up 3.3 per cent in the year in March while total industrial production was 3 per cent higher.
The 'modern' sector, comprising a number of high-tech and chemical sectors, showed an annual increase of 5.8 per cent while traditional-related industrial production was down 2.9 per cent.
The seasonally adjusted industrial turnover index for manufacturing industries shows that, on an annual basis, turnover was 16.4 per cent lower when compared with March 2009.
However, the first quarter turnover index was 12.6 per cent higher when compared with the fourth quarter of 2009.
According to Alan McQuaid, chief economist with Bloxham Stockbrokers, Irish manufacturing output is projected to increase by over 5 per cent on average in volume terms in 2010.
"Encouragingly, the “Traditional” sector looks set to make a positive contribution as the year goes on, reaping the benefits of stronger sterling and the significant cost adjustments made over the past twelve months or so," he said.
