The latest PMI survey from S&P Global shows a sharp and accelerated increase in output in Dublin’s private sector, with the headline rate standing at 55.6, up from 53.2 in Q4, its highest level recorded since Q2 2022. Importantly, the index continues to sit above the 50-point threshold, indicating activity remains in expansion territory. This marked increase in output in Dublin contrasted with a slight fall in activity across the Rest of Ireland, where the index stood at 49.7.
In terms of sectoral performance in Dublin, the overall expansion reflected accelerated growth in the Construction sector (60.7) and a rebound in the Manufacturing sector (59.9), with the Services sector (52.4) recording a softer increase than in the previous quarter. The Rest of Ireland showed a slight expansion in the Services (50.7) and Construction sectors (50.3), while the Manufacturing sector (48.0) recorded a contraction over the period.
The sharp rise in output in the opening quarter was in line with a marked expansion of new orders, with the index at 56.4, the highest rate of growth in new business for four years. Notably, the rise in Dublin was in stark contrast to the picture across the Rest of Ireland, where new orders recorded a first contraction since Q3 2023, to stand at 49.7.
Increased workloads led to a renewed rise in employment in Dublin during the opening quarter, however the pace of job creation was modest with the Employment Index at 51.2. The Rest of Ireland posted a faster increase in staffing levels than recorded in the capital, the index increasing to 52.3, up from 51.7 in the previous quarter.
Overall, the data points to a continuation of robust momentum in Dublin’s private sector; however, the outlook remains subject to increased uncertainty, given ongoing geopolitical tensions in the Middle East and their potential implications for energy prices, supply chains and broader business confidence.
Commenting on the PMI, Andrew Harker, Economics Director at S&P Global Market Intelligence said:
“Dublin acted as a growth engine for the Irish economy in the opening quarter of 2026, posting much sharper increases in output and new orders than had been seen at the end of 2025. In fact, the expansion in the capital contrasted with a slight fall in business activity across the Rest of Ireland. Whether the strong performance over the opening quarter will continue into Q2 remains to be seen, with companies now having to contend with higher prices, supply-chain disruption and economic uncertainty as a result of the war in the Middle East.”