Dublin Economic Monitor

Retail activity across both Dublin and Ireland showed better results in Q3 with an overall positive YoY growth rate. The divergence in sector performance remained extreme with increases in spending on household goods while discretionary goods and entertainment showed significant declines. Online sales growth continues to post strong results.

While the Dublin PMI signalled a rebound in business activity in Dublin during the third quarter of the year, measures of new orders and employment were less positive and therefore are a cause for concern. With pandemic restrictions now being tightened again, the fourth quarter looks set to provide further challenges for companies and puts into doubt the ability of the local economy to recover quickly.

The Economic Monitor reflects an eventful quarter which saw strong bounce backs in economic performance quickly run out of steam. This is an unfortunate and inevitable consequence of the ‘stop-go’ cycle that dealing with Covid-19 has pushed us into. Hope for 2021 emerged on the news of a potential vaccine. Of course, Brexit looms large and could lead to an even more complex operating environment in January without a deal.