The latest PMI survey from S&P Global, shows Q2 activity in Dublin’s private sector rose for the sixth consecutive quarter.
The latest PMI survey from S&P Global, shows that activity in Dublin’s private sector rose for the sixth consecutive quarter in Q2 2024, but at a slower pace than the opening quarter of the year. The headline rate softened to 52.4 from 53.1 in Q1, and was lower than the 54.9 reading in the same quarter in 2023. After a weaker start to 2024, business activity (52.8) in Rest of Ireland outpaced Dublin in Q2.
The services sector (54.0) continued to drive growth in Capital in Q2 and there was a further increase in Construction activity (51.9). However, a deepening downturn was registered in manufacturing with the headline rate slipping to 46.5 from 49.9 in Q1. This is firmly below the 50 mark that denotes growth.
Reflecting the overall deceleration in business activity, the Q2 rate of job creation by Dublin businesses was the softest since Q1 2021. The slight increase in employment (50.8) in the quarter contrasted with the solid 53.9 seen in Q1. Job creation in the Rest of Ireland was steady with the index remaining at 52.5.
On a positive note, the New Orders Index for Dublin signalled an increase for the second consecutive quarter in Q2. At 52.0 it was marginally weaker than the 52.7 seen in Q1 2024 but the level still bodes well for activity in the coming quarters. New orders across the Rest of Ireland (53.2) rose at a faster pace than in Dublin.
Commenting on the PMI, Andrew Harker, Economics Director at S&P Global Market Intelligence said:
“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.”
Economist, Dublin City Council
