The latest Dublin Economic Monitor, published this morning by the four Dublin Local Authorities, shows a stable economy in Q4 2024, driven by strong employment levels and growth in private sector activity.
Dublin & Ireland PMI
The Dublin S&P Global Purchasing Managers’ Index (PMI) showed a marked expansion of business activity in the Capital in the final quarter of 2024, with the rate of growth accelerating to its fastest since Q2 2023. The PMI reading for Dublin stood strong at 54.7, up from 52.8 in Q3, and above the 50 mark which denotes growth. For the second consecutive quarter, all three sectors contributed to the expansion in Dublin’s business activity. Activity in the construction (59.6) and services (55.1) sectors continued to drive growth in the Capital with both growing at swifter paces than in Q3. While manufacturing production increased (52.7), it did so at a softer rate than the previous quarter (53.7).
Dublin Unemployment Rate
Dublin’s unemployment rate recorded a second consecutive modest uplift in Q4 2024, increasing marginally by 0.1 percentage points QoQ to stand at 4.9%. Employment levels remained elevated in spite of a 2% decline QoQ with almost 813,000 (SA) residents employed in the quarter. Data from Indeed highlights Dublin job postings plateaued in mid-February 2025, following a period of minor fluctuations. Postings were down by 9 percentage points versus the 2020 baseline.
Dublin House Commencements & Completions
In the residential sector, housing commencements in Dublin contracted sharply in Q4 2024, as the volume of residential units under construction hit a two-year low of fewer than 3,000 units (non-SA). This reflected declines of 54.6% QoQ and 31.4% YoY. Completions of units also declined by 8.1% QoQ as the number of new units entering Dublin’s housing stock fell to 3,548 (SA) in the quarter.
FDI Capital Investment Per Capita, Rolling 4 Quarter Average
Based on a rolling 4 quarter average, foreign direct investment (FDI) into Dublin continued to fall QoQ in Q4 2024. Average capital investment declined by 14.3% QoQ to $735 million. In contrast, YoY growth of 4.4% was recorded. The number of FDI projects in Q4 remained stable QoQ, with 28 projects recorded, while job creation stood at 2,513 in the quarter and was the only metric to increase both QoQ (+5.5%) and YoY (+9.7%). In spite of this, Dublin compared favourably to its European counterparts for FDI per capita ($639) and had an average project value of $27 million – $2 million more than London which ranked second for this metric.
Dublin’s economy continues to show impressive resilience, with solid private sector growth and employment levels holding firm despite some sectoral headwinds. The broad-based expansion across manufacturing, construction, and services is particularly encouraging, reinforcing the capital’s position as a key driver of national economic performance. However, challenges remain, particularly in housing supply and FDI flows, which policymakers will need to address to sustain this positive momentum.
ANDREW WEBB, CHIEF ECONOMIST WITH GRANT THORNTON
The Dublin Economic Monitor is produced by Grant Thornton on behalf of the four Dublin Local Authorities to provide timely, reliable data and commentary on the economic landscape of the Dublin region. It covers 18 key indicators, consumer spending data from the MasterCard SpendingPulse™ and provides regular insights into different aspects of Dublin’s economy.
