The latest PMI Survey shows that business activity in Dublin rebounded in Q2.
The latest PMI survey from IHS Markit shows that business activity in Dublin rebounded in Q2 as COVID-19 restrictions were eased. Activity expanded at its fastest pace since the final quarter of 2015. Activity increased sharply across all three monitored sectors, led by manufacturing. Output across the rest of Ireland also increases and at a slightly stronger pace that seen in Dublin.
This followed a sharp decline in business activity in the first quarter of 2021.
The reopening of the economy saw a marked expansion in new orders which soared at their steepest rate since 2015. This ended a five-quarter sequence of decline. It also signals the potential for robust business activity in the coming quarters.
For the second successive quarter, companies in Dublin increased their staffing levels as they anticipated increased business activity. Moreover, the rate of job creation accelerated from the previous quarter to the fastest since Q1 2019. Employment also returned to growth across the Rest of Ireland, with the rate of expansion more marked than in Dublin.
Business activity in the capital and across Ireland continues to track the path of restrictions. This latest easing is benefiting all sectors. Although uncertainty linked to COVID-19 variants remains, the rollout of the vaccination programme means the outlook is beginning to look more positive.
Commenting on the PMI, Andrew Harker, Economics Director at IHS Markit said:
“The loosening of COVID-19 restrictions helped to breathe life back into the Dublin economy over the course of the second quarter, with the recovery from the pandemic now underway in earnest. Companies in the capital, and across the rest of Ireland, will be hoping that this trend continues and that sustained growth can be secured over the rest of 2021 and into next year.”