Mixed signals for economic growth in Dublin

The eighth issue of the Dublin Economic Monitor has been launched today.

A joint initiative of the four Dublin local authorities, the Monitor focuses on the Dublin region, and tracks 15 key economic indicators.

It captures data from the height of the boom to the economic crash and the subsequent recovery.

These indicators show that mixed economic signals have come to the fore from a combination of domestic and external factors and reflect a strong economy which nonetheless is facing challenges on a number of fronts.

Key Highlights:

Dublin’s unemployment rate dipped slightly to 7.8% in Q3 2016 following an unexpected increase in the second quarter of the year. 

Employment levels in Dublin continued to rise, with the most significant expansions in the industry and construction sectors.

Residential rents in Dublin showed mixed signs in Q3 2016 as rents for houses dipped, but rents for apartments rose in the quarter.

Residential property price growth sharpened between July and October 2016 with prices returning to 2009 levels.

Passenger arrivals at Dublin Airport reached a new monthly record of 1.17 million in September 2016.

Speaking at the publication of this issue, Lorcan Blake, Economic Consultant at DKM Economic Consultants said:

“The latest indicators for the Dublin economy point to a strong performance with growth underpinned by an ongoing improvement in the labour market and robust business activity levels.

“However, the downward trend in consumer sentiment and stubbornly high residential and commercial rents are of concern.”

Austin Hughes, Chief Economist at KBC Bank Ireland said:

“Dublin consumer sentiment declined significantly in late 2016 as the mood of consumers in the capital weakened notably more than that of consumers in the rest of Ireland.

“In part, the drop in confidence stems from greater nervousness about the general economic outlook because of threats posed by Brexit and potential changes in US policymaking.

“However, a more influential factor was a downgrade of consumers’ own personal finances that may reflect pressure on living costs in Dublin.”

Access to the full report is provided by clicking on the following link: www.dublineconomy.ie