Dublin Economic Monitor

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.

Overall retail sales growth in Dublin as well as across Ireland decelerated in Q1 2024 versus Q1 2023. In Dublin, the Entertainment sector had been seeing large growth rates recovering from the pandemic dating back to Q2 2021. The growth rates in the sector are normalising as we move away from the deep declines experienced during the pandemic. Tourism related spending remains strong with growth in Dublin and across Ireland.

The economic mood is more upbeat heading into the second half of 2024. Forecasters are lifting their expectations for growth now that inflation appears to be under control. Improvements in global trade, continued strength in the labour market and interest rate cuts on the horizon are all adding to a renewed positivity. This is reflected in solid performance across key business and consumer spending indicators in this latest Dublin Economic Monitor.