Dublin Economic Monitor

In Q4 overall retail sales YoY growth rates in both Dublin as well as Ireland showed more stability than compared to the quarters immediately following the pandemic. Overall retail sales growth rates of 6% YoY for Dublin and 4% YoY for Ireland are in a range that is more typical for general retail economic activity. Some sectors, such as Entertainment, remain elevated as we continue to recover from some suppressed activity a year ago, though many sectors are showing more typical growth in the low-to-mid single digits.

Dublin firms are feeling the pinch at present as waning demand acts to limit business activity both in the capital and across the Rest of Ireland as well. Growth in the service sector was cancelled out by falling activity across manufacturing and construction in the final quarter of 2022. On a more positive note, however, firms are still taking on extra staff, perhaps hoping that any soft-patch will prove to be short-lived.

A mixed economic picture has emerged this quarter with some indicators such as the PMI showing manufacturing and construction in contraction mode while services remain in growth territory. The economy feels like it has entered ‘wait and see’ mode as business and consumer sentiment reflects the uncertain and inflationary environment that has gripped economic performance this year. While growth is expected to continue in 2023, the pace of that growth will be much slower than in previous years.