The latest PMI survey from S&P Global shows output in Dublin’s private sector increased again in the second quarter of 2026.
Dublin Business Activity Increased Again in the Second Quarter of 2026 albeit at a slower pace than in Q1, with the headline rate standing at 51.2. Importantly, the index continues to sit above the 50-point threshold, indicating activity remains in expansion territory. Meanwhile, business activity in the Rest of Ireland was broadly stable during the quarter, where the index stood at 49.9.
In terms of sectoral performance in Dublin, production rose sharply in the Manufacturing sector (56.2), while activity in the Services sector (50.4) remained in expansion over the period, albeit softer than in Q1. In contrast, activity decreased for the first time in two and a half years in the Construction sector (45.3). The Rest of Ireland showed an expansion in Construction (51.7), while the Services (49.1) and Manufacturing sectors (49.5) both recorded a slight contraction over the period.
New orders were broadly unchanged in Q2, ending a three-quarter sequence of growth, with the index at 49.9. This stability over the period followed a strong rise in new business in the opening quarter of the year. Across the Rest of Ireland, there was little change in new orders, where a slight expansion was recorded, to stand at 50.1.
Staffing levels in Dublin increased for the second consecutive quarter, with the Employment Index at 50.6. The latest rise was modest and softer than that recorded in the opening quarter of the year. The Rest of Ireland posted a stronger increase in job creation than Dublin, with the index increasing to 53.0 in Q2.
Overall, the data points to more muted momentum in Dublin’s private sector in the second quarter of the year; however, this is likely reflective of a notably strong opening quarter. The outlook remains uncertain, given the ongoing geopolitical tensions in the Middle East and their broader economic impacts across the globe.
Commenting on the PMI, Andrew Harker, Economics Director at S&P Global Market Intelligence said:
The disruption and uncertainty caused by the war in the Middle East acted to limit growth in Dublin’s private sector during the second quarter of 2026, although a slower expansion in output in Q2 likely reflects some payback from a particularly strong opening to the year. Companies did manage to keep raising business activity during the quarter, but weakness in construction and a lack of new order growth sound a note of caution going into the second half of the year. Companies will be hoping that a more stable geopolitical environment will help growth to regain momentum.
Andrew Harker, Economics Director at S&P Global Market Intelligence
