Dublin Economic Monitor

Following a slight slowdown at the end of last year, the Dublin private sector soared straight back into expansion territory in the opening quarter of the year and registered marked uplifts in all of three of activity, new orders and employment. The wider upturn was buoyed by sharp growth in the services and construction sectors where firms were able to take advantage of some easing in inflationary pressures and the recent pick up in customer demand. Conditions, however, were less favourable in the manufacturing economy which registered its most sizeable fall in activity since the first quarter of 2021.

Overall retail sales in Dublin as well as Ireland posted solid results in Q1 2023. Entertainment spending showed significant increases over Q1 2022 as travel and tourism continued to recover. Both discretionary and necessities spending showed solid growth rates in the mid-single digits while household goods spending lagged somewhat in both Dublin as well as across Ireland.

This edition of the Dublin Economic Monitor reflects on a period of yet more economic concern and looks towards a year ahead that should see inflation continue to influence prospects while loosening its grip. Although key economic indicators are indicating a sluggishness, the economy is expected to avoid recession in 2023. Consumer and business confidence, both of which have endured significant recent declines, will be watched with interest to see if the great resilience that has been evident will sustain.