The latest PMI survey shows that business activity in Dublin continued to increase in Q3, albeit at the softest rate of the year so far.
The latest PMI survey, from S&P Global, shows that business activity in Dublin continued to increase in Q3, albeit at the softest rate of the year so far. The headline rate stood at 53.5, down from 54.9 in the previous quarter. On a sectoral basis, both Construction (57.3) and Services (52.6) posted increases in activity while the Manufacturing sector (49.4) decreased for the 5th consecutive quarter. Output across the Rest of Ireland in Q3 remained narrowly within expansionary territory (50.5).
On the Employment side, labour market trends remained resilient in Q3 as rising workloads resulted in increased staffing levels in Dublin (56.0). The rate of job creation was the most pronounced since Q2 2022. Employment also increased across the Rest of Ireland, but at a slower pace than seen in the capital.
Looking forward, the strength of the New Orders measure persisted at 54.4, continuing the trend since the beginning of the year. Similarly to business activity trends, the rate of increase was softer than seen in Q2. The Rest of Ireland experienced a slight decrease in New Orders (49.3). While the expansion in new business in the capital signals the potential for strong activity, geopolitical uncertainty and the potential for additional monetary policy tightening pose a real threat to businesses for the remainder of the year.
Business activity in Dublin and Ireland continued to increase in the third quarter of the year. The resilience of the capital’s labour market is undeniable as employment growth accelerated in the quarter. However, increasing global uncertainty indicates the potential for fresh setbacks in business activity throughout the remainder of the year.
Commenting on the PMI, Andrew Harker, Economics Director at S&P Global Market Intelligence said:
“Dublin’s labour market stepped up a gear in the third quarter, seeing a rapid rise in employment as firms responded to sustained growth of workloads. This was despite some signs of growth in output and new orders losing some momentum from earlier in the year. Growth of business activity in Dublin continued to outperform the Rest of Ireland, and firms will be hoping to complete a full year of expansion as we work through the final quarter of 2023.”