Business activity showed a modest pick-up in Dublin in the fourth quarter of 2019. This is according to the latest Dublin Economic Monitor (DEM) published this morning which is produced by EY-DKM Economic Advisory on behalf of the four Dublin Local Authorities.
The monitor shows receding global trade tensions and temporary clarity over Brexit helped Manufacturing return to expansionary territory for the first time since the fourth quarter 2018 and Services output accelerate.
This saw the overall IHS Markit Purchasing Managers Index (PMI) rise to 53.7. This contrasts with the rest of Ireland where the index fell below 50 for the first time since the third quarter of 2013.
Brexit uncertainty was still apparent in Dublin Port in the third quarter with throughput seeing its second consecutive quarter of Quarter on Quarter decline. This is one to watch in the coming quarters as negotiations surrounding the future trading relationship between the EU and the UK will likely see continued volatility in imports and exports.
Commenting on the report’s findings, Economist with EY-DKM Economic Advisory, Ciara Morley said, "Since the economic crises at the beginning of the last decade, Dublin has emerged as one of the fastest growing cities in one of the fastest growing economies in Europe. Unemployment is now at its lowest level in almost 15 years and the workforce is at an all-time high. There is little doubt, however, that this success has brought with it its own challenges and Dublin is now facing several issues that are impacting its international competitiveness."
She added, "Our analysis shows, for example, that the challenges in the housing market – where average residential rents have increased in Dublin by 6.7% Year on Year (YoY) are causing a drag on Dublin’s position in rankings focused on the quality and cost of living. Policies to boost housing supply, and thus affordability, in the city should go some way to improving the quality and cost of living for residents and expatriates alike."