Dublin's economy 'balancing resilience' with a slowing pace of growth, monitor shows
Business activity in the county’s private sector increased in the second quarter of 2025 but at the softest rate of expansion since late 2023. File photo: Patrick Bolger/Bloomberg
The economy in Dublin was resilient during the second quarter of the year but the pace of growth is slowing with rising unemployment and housing commencements becoming a concern, the latest Dublin Economic Monitor shows.
The economic monitor is produced by Grant Thornton on behalf of the four Dublin local authorities. Chief economist at Grant Thornton, Andrew Webb, said the monitor shows “Dublin’s economy balancing resilience with a slowing pace”.
“Employment remains at record highs, consumer spending is edging upwards, and all sectors of business activity are still in expansion. Yet, the rise in unemployment, weakening vacancy trends, and a sharp fall in housing commencements are important signals that the city cannot ignore,” he said.
The S&P Global Purchasing Managers’ Index (PMI) showed that business activity in the county’s private sector increased in the second quarter of 2025 but at the softest rate of expansion since late 2023.
The headline rate stood at 52.2, which is above the 50-point mark that denotes expansion.
All three sectors that make up business activity in the county expanded during the second quarter with the construction sector recording a strong rate of growth with a PMI reading of 55.8.
The manufacturing sector saw a bounce back in fortunes. During the first quarter it had a PMI reading of 48.9 which increased to 54.2 during the second quarter. The services sector saw marginal growth with a reading of 50.3.
Employment rose to a new peak of 837,700 during the quarter but the pace of growth slowed. At the same time, Dublin’s unemployment rate increased to 4.9%, up from 4.3% as of the end of March.
In the residential construction sector, housing commencements fell for a fourth consecutive quarter to 952 units.
