Construction, employment and retail spending across Dublin increased in the third quarter, according to the latest Dublin Economic Monitor report published by the capital’s four local authorities, showing the county’s economy remained solid over the period.
The Dublin S&P Global Purchasing Managers’ Index, part of the report lending insight into business conditions, rose to 52.8, up from 52.4 in the second quarter.
The number of newly completed homes reached a new high of 3,900 in the third quarter, up 71.6 per cent on the previous quarter and 4.8 per cent on the same period in 2023.
The index looks at performance in various sectors of the economy with any figure above 50 indicating growth and anything below 50 showing decline.
From a sectoral point of view, growth in the construction sector rose from 51.9 in the second quarter to 53.2 in the third.
The report was produced by Grant Thornton on behalf of the four Dublin local authorities.
Andrew Webb chief economist with Grant Thornton said as the election season ends, “the fortunes of an incoming government will be significantly influenced by the economy”.
However, despite the fortunate outlook, Mr Webb said the incoming government would have plenty on its plate in terms of the Dublin economy. “All in all, the economy is providing good cheer but the next government’s in-tray will have plenty in it to ensure Dublin’s economy continues on this path.”
Employment in Dublin continued to rise reaching a new peak of 829,000 people. However, the unemployment rate in the city rose marginally, hitting 4.7 per cent, the first increase this year.
According to MasterCard retail data total spending in Dublin increased over the third quarter, up 0.3 per cent compared to the second and by 1.1 per cent on an annual basis.
Despite challenges, including Covid-19, spending in the county has risen quarter-on-quarter for the last four years.
The MasterCard data shows spending growth in the third quarter was subdued across the categories of entertainment, necessities, discretionary items and household goods.
Entertainment and necessities saw marginal increases compared to the previous quarter at 0.3 per cent and 0.2 per cent, respectively. Discretionary items and household goods were flat, compared to the previous quarter.
Foreign direct investment in Dublin dropped in the third quarter, based on a rolling four quarter average. The average capital investment over the four quarters fell by 1.9 per cent compared to the second quarter and by 9.6 per cent on an annual basis to $831 million.
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