The latest Dublin Economic Monitor, published this morning by the four Dublin Local Authorities, shows that economic activity in the Capital remained positive in Q1 2026. Business activity strengthened sharply, retail and tourism spending continued to expand, and housing construction rebounded strongly, even as signs of easing emerged in labour market conditions and hiring activity.
Dublin & Ireland PMI
The S&P Global Purchasing Managers’ Index (PMI) for Dublin showed a sharp and accelerated increase in output in Dublin’s private sector in Q1 2026. The headline PMI figure stood at 55.6, up from 53.2 in Q4, and its highest level recorded since Q2 2022. Importantly, the index continued to sit above the 50-point threshold, indicating that activity remains in expansion territory. In terms of sectoral performance, the overall expansion reflected accelerated growth in the Construction sector (60.7) and a rebound in the Manufacturing sector (59.9), with the Services sector (52.4) recording a softer increase than in the previous quarter.
Dublin Unemployment Rate
Employment levels among Dublin residents fell to 827,200 jobs (SA) in Q1 2026. Despite the decline, employment remained elevated by historical standards, having stood above the 800,000 (SA) threshold in every quarter since Q1 2024. At the same time, the unemployment rate increased to 5.4% (SA) in Q1 2026, its highest level in four years, pointing to further easing in labour market conditions. Job vacancy data indicates a similar easing in labour market conditions, as the volume of Dublin job postings on the Indeed platform continued to trend below pre-pandemic levels. By early May 2026, the Dublin job postings index stood 14.3 percentage points below the February 2020 baseline, compared with 5.8 percentage points below the baseline in early March. This extended the broader downward trend in hiring activity observed since 2023.
Retail Spending
According to MasterCard data, retail spending in Dublin continued to expand during Q1 2026. Total sales values increased by 2.7% QoQ and by 10% YoY, lifting the retail sales index to a new high of 161.8 (2015=100). This marked the strongest YoY growth rate recorded since early 2022. QoQ growth was mixed across categories. Necessities spending rose by 3.5% QoQ, while Discretionary sales increased by a modest 0.4% QoQ – likely reflecting the impact of rising prices on consumers’ spending choices. In contrast, Household Goods spending declined by 3.8% QoQ and Entertainment spend fell sharply (-9.3% QoQ), suggesting some softening in higher-value and experience-led consumption. YoY growth remained positive across all major categories, with Household Goods sales up by 13.1% YoY and Discretionary spending rising by 7.6% YoY. Spending by overseas visitors in Dublin also strengthened further during Q1 2026. Total tourist expenditure increased by 1.7% QoQ and by 8.7% YoY, pointing to continued resilience in international visitor demand at the start of 2026.
Resource Packs
Dublin House Commencements & Completions
Housing delivery in Dublin remained strong in Q1 2026. New housing completions totalled 3,060 units (SA) in the quarter, representing growth of 33.7% YoY, and underlining growing momentum in the sector. This did however represent a decline of 18.4% QoQ from the particularly strong level of 3,751 (SA) units completed in Q4 2025 – highlighting ongoing volatility in the housing pipeline. New housing commencements in Dublin strengthened significantly in Q1, rising to 2,921 units (non-SA) representing growth of +35.1% QoQ and +181.7% YoY. Such a sharp rebound from flagging commencements levels in the first three quarters of 2025 further points to forthcoming impetus in the housing pipeline.
FDI Capital Investment per Capita & Average Project Value, Rolling 4 Quarters, Q1 2026
Based on a rolling 4 quarter average, foreign direct investment (FDI) into Dublin strengthened in Q1 2026. Average capital investment increased to $889 million in the quarter, rising by 55% QoQ and by 2.9% YoY, returning to levels last seen in Q2 2024. Average job creation also improved to 1,900, representing growth both QoQ (+10.7%) and YoY (+4%). The average number of investment projects increased more modestly, rising by 1.7% QoQ and by 6.1% YoY to 31 projects. As a result, average project size increased significantly to $29.2 million, reversing some of the reductions observed through 2025 and pointing to a recovery in the scale of inward investment activity. Dublin also retained its position as Europe’s leading city for FDI per capita, reaching $773 in the quarter.
The latest Dublin Economic Monitor shows that economic momentum in the Capital remained positive in early 2026. Business activity strengthened sharply in Q1, recording its strongest reading since 2022, while retail spending, tourism activity and housing commencements all increased further. It is also encouraging to see a recovery in inward investment activity during the quarter, with both FDI capital investment and job creation increasing. At the same time, the data points to some easing in labour market conditions, with unemployment rising and hiring activity softening. Nonetheless, the broader outlook for Dublin’s economy remains positive.
LORCAN BLAKE, DIRECTOR OF ECONOMIC ADVISORY WITH GRANT THORNTON
The Dublin Economic Monitor is produced by Grant Thornton on behalf of the four Dublin Local Authorities to provide timely, reliable data and commentary on the economic landscape of the Dublin region. It covers 18 key indicators, consumer spending data from the MasterCard SpendingPulse™ and provides regular insights into different aspects of Dublin’s economy.
