The Dublin City Region plays a pivitol role in the economy of Ireland. The Dublin Economic Monitor tracks the capital’s performance quarterly to provide insightful data.
Dublin's retail sector continued to grow in Q3. While growth rates softened, this was the 17th consecutive quarter of growth, in spite of high cost of living and inflation levels. The Entertainment sector continued to be a key driver in this regard. Increasing 5.7% YoY, spend in hotels, bars and restaurants remained crucial for the economy, as discretionary and e-commerce spend slowed.
The Dublin private sector continued to tick along nicely during the third quarter, as was actually the case across the broader Irish economy as well. The most pleasing aspect of the latest set of results was a renewed rise in manufacturing production, meaning that all of the segments covered by the PMI surveys contributed to the overall expansion for the first time in more than two years. The capital’s private sector is therefore set up well to end the year on a positive note.
As we head into Budget season, this DEM suggests almost all is well. Activity in the private sector is up for the sixth consecutive quarter and consumer spending in the capital has sustained an upward trajectory that began four years ago. Employment in Dublin remains strong and the exceptional FDI numbers noted in this edition are a welcome boost after a slow start to the year. One note of caution comes via national unemployment figures – with over 16,000 more unemployed nationally than one year ago, we are less able to call the strength of the labour market with absolute certainty. We will watch labour market indicators particularly closely over coming editions.