Dublin Economic Monitor

It was good to see a return to growth in manufacturing production in Dublin, which meant that all three monitored sectors contributed to the overall expansion in business activity seen in the second quarter of the year. Overall, however, the picture was quite subdued, with little movement in new orders during the quarter meaning that firms increased their output and employment only modestly. With US trade policy potentially becoming clearer soon, the Dublin private sector is at something of a crossroads as we enter the second half of the year. We will hopefully see a demand environment more conducive to growth in Q3.

The latest Monitor paints a picture of an economy holding steady in the face of global uncertainty. Dublin's labour market remains a cornerstone of this resilience, with record employment levels and falling unemployment underpinning a stable outlook. However, there are signals of caution, particularly in consumer and business sentiment, as discretionary spending dips and the pace of private sector growth softens. The sharp decline in housing supply is a flashing warning light, one that will need to be addressed if the city is to support both population growth and continued investment. Overall, the city's economic fundamentals remain sound, but momentum is more measured.