Business activity in Dublin softened between April and June as a contraction in the manufacturing sector dragged down strong performances in the services and construction sectors, the latest Dublin Economic Monitor shows.
The latest Dublin Purchasing Managers’ Index (PMI) reading fell from 53.1 during the first quarter of the year to 52.4 during the second quarter. The PMI is a measure of economic trends whereby any reading above 50 indicates growth.
The services sector in Dublin continued to drive growth between April and June with a reading of 54.0. There was also a further increase in construction activity, 51.9, which likely reflects the acceleration in residential construction in recent quarters.
However, manufacturing saw another downturn marking the seventh contraction in the last eight quarters. The headline reading slipped to 46.5 from 49.9 earlier this year.
Despite the easing of business activity in the capital, there has been an increase in retail spending and employment levels.
Mastercard data showed that total expenditure increased by 0.7% quarter-on-quarter and by 2.3% year-on-year. The spending growth was driven by entertainment spending — up 1.5% compared to earlier this year.
There was also a 1.2% increase in sales in department and clothing stores.
The unemployment rate in the capital stood at 4.5% during the second quarter as employment levels amongst Dublin residents gained further momentum to reach a new peak of 826,600.
Chief economist with Grant Thornton, who produces the economic monitor, Andrew Webb said there was a note of caution by way of the unemployment figures.
“With over 16,000 more unemployed nationally than one year ago, we are less able to call the strength of the labour market with absolute certainty,” he said.