Dublin Economic Monitor

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.

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%