Dublin Economic Monitor

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.

Q2 saw Dublin's retail sector record its 16th consecutive quarter of growth. While inflation is an influential factor, the relative strength of the economy – and the labour market in particular - are likely drivers of these sustained expansions. This is specifically seen in the Entertainment sector where there was YoY growth of 5.2%

Although the Dublin PMI showed a slowing of economic growth during the second quarter, the capital remained in expansion mode. It is on a solid footing heading into the second half of the year. The main area of weakness was manufacturing which continued to scale back production. But the service sector in particular powered ahead. The generally positive picture in the capital was matched across the Rest of Ireland, with growth outside Dublin actually outpacing that seen in the capital for the first time since the end of 2022.