Dublin's private sector sees growth during third quarter 

Growth driven by increased activity in manufacturing and construction sectors

In Dublin, the construction sector recorded a reading of 53.2, returning to growth following a contraction during the second quarter. File picture

Dublin’s business community recorded another period of growth between July and September, driven by manufacturing and construction, extending a run of expansion to more than three years, the capital’s latest Purchasing Managers Index (PMI) shows.

The private business sector in the capital recorded a PMI reading of 52.0 during the third quarter, extending a run of expansion that has now continued for more than three years. Any PMI reading above 50 denotes growth in the sector.

The Dublin PMI, which surveyed about 200 businesses, is conducted by S&P Global.

Meanwhile, business activity returned to growth in the rest of Ireland, increasing solidly over the quarter, with the index at 54.0.

In Dublin, the manufacturing sector recorded the strongest PMI reading of 53.5, while the construction sector recorded a reading of 53.2, returning to growth following a contraction during the second quarter. The services sector recorded a reading of 50.6, showing modest growth.

Economics director at S&P Global Market Intelligence Andrew Harker said despite a challenging backdrop, Dublin’s private sector continued to grow during the third quarter and “actually saw improving rates of expansion across the key metrics covered”.

“There was also a welcome return to growth in the construction sector, joining manufacturing and services in expansion territory. The resilience seen in the capital was matched by the picture in the rest of Ireland, where activity rebounded after a stagnant first half of the year,” he said.

“While uncertainty remains a key feature of the economy at present, the Dublin private sector looks well placed for a positive end to the year.” 

According to the PMI, new orders for Dublin-based businesses increased to a solid reading of 52.3 compared to the flat performance of the second quarter. This was broadly mirrored across the rest of the country.

For the third successive quarter, Dublin companies increased employment in the third quarter. The rate of job creation was modest, but faster than the second quarter.

“Overall, Dublin's private sector continued to expand during the third quarter of 2026 despite persistent geopolitical tensions and ongoing global economic uncertainty,” the PMI said.

“The broad-based nature of growth across the construction, manufacturing and services sectors, together with a renewed increase in new business, suggests firms are entering the final quarter of the year with positive momentum.”