Dublin business activity shows solid increase in Q1 2024

The latest PMI survey, from S&P Global, shows that activity in Dublin's private sector rose steadily in Q1 with the rate of growth accelerating from the end of 2023. The headline rate rose to 53.1 up from 51.9 in Q4 2023, but was lower than the 55.5 reading in the same quarter in 2023. Growth also increased in the Rest of Ireland in the first quarter of the year but at 51.1, it was slower outside the Capital.

On a sectoral basis, growth in activity in Dublin was partly driven by a faster increase in the dominant Services Sector (54.1), while the Construction Sector returned to growth (51.9). However, activity levels in the Manufacturing Sector dipped below the 50 mark, which denotes growth, to 49.9 compared with a strong reading of 53.3 at the end of 2024.

In response to the accelerating growth in business activity, Dublin businesses continued to expand their staffing levels in the opening quarter of the year. The latest increase in employment (53.9) was solid and slightly faster than in the previous quarter (52.0). Solid job creation was also seen in the Rest of Ireland with its index accelerating to 52.8.

Following a contraction in New Orders in Q4 for Dublin, Q1 2024 data (52.7) shows a return to growth in work pipelines. New orders in Dublin were stronger than that across the Rest of Ireland (51.7) for the quarter.

Commenting on the PMI, Andrew Harker, Economics Director at S&P Global Market Intelligence said, "The Dublin private sector started 2024 on the front foot as renewed growth of new orders supported faster rises in output and employment. The dominant service sector was the main source of expansion, with increases hopefully set to become more broad based as the year progresses. The positive performance in Dublin was consistent with the picture for the Rest of Ireland which also began the year in expansion mode, although the capital saw faster growth rates across the three indicators covered."