Growth in Dublin slows as construction activity contracts 

Economic monitor shows slowdown was driven by 'activity levels in the construction sector swinging sharply' from robust expansion between July and September, to contraction in between October and December

Data from MasterCard shows consumer spending in Dublin during the last three months of the year increased by 3.4%, with the entertainment sector — which includes hotels, bars, and restaurants — being the main driver.

Growth in Dublin slowed towards the end of last year, driven by a contraction in the construction sector which saw activity swing “sharply” between October and December.

According to the latest Dublin Economic Monitor, the slowdown in the capital was mitigated by stronger performances across the services and manufacturing sectors.

The monitor is conducted by Grant Thornton on behalf of the four local authorities across the county.

The Dublin S&P Global Purchasing Managers’ Index (PMI) slowed to 51.9 between October and December, which is down from 53.5 during the prior three month period.

The PMI is a single-figure indicator of a sector’s performance, with any figure greater than 50.0 indicating growth.

This was the first time in 2023 when there wasn’t a quarter-on-quarter expansion in economic activity across Dublin.

The monitor said this slowdown was driven by “activity levels in the construction sector swinging sharply” from a robust expansion between July and September, a PMI of 57.3, to contraction in between October and December, a PMI of 45.4.

The overall positive reading at the end of the year was driven by the services and manufacturing sectors.

Chief economist at Grant Thornton Andrew Webb said getting a “clear read” on the economy was “proving elusive at the moment” and this monitor “reflects this challenge”.

“All things considered, the domestic economy has recorded growth, and is expected to continue doing so, but weak external demand is dampening the pace of expected growth,” he said.

Data from MasterCard shows consumer spending in Dublin during the last three months of the year increased by 3.4%, with the entertainment sector — which includes hotels, bars, and restaurants — being the main driver.

Tourism spending increased by 5.7% compared to the end of 2022.

Unemployment in Dublin fell to 4.7% in the last three months of the year.

The monitor also shows 2023 was a record year for public transport usage as 251 million journeys were undertaken throughout the capital — up 48 million from 2022.