The latest S&P Global Purchasing Managers' Index (PMI) survey reveals a robust performance for Dublin's private sector in the first quarter of 2026. The headline index rose to 55.6, up from 53.2 in the final quarter of 2025, marking the highest level of growth recorded since the second quarter of 2022.

This expansion in the capital stands in notable contrast to the rest of the country, where overall business activity saw a slight decline, with the index for the Rest of Ireland standing at 49.7.

Dublin's growth was underpinned by significant activity in the construction and manufacturing sectors:

• Construction: Recorded the strongest performance with an index of 60.7.

• Manufacturing: Experienced a strong rebound, reaching 59.9.

• Services: Continued to expand, though at a softer pace than the previous quarter, with an index of 52.4.

Conversely, the Rest of Ireland saw more muted results, with the manufacturing sector experiencing a contraction (48.0), while construction (50.3) and services (50.7) saw only marginal expansion. Dublin saw a surge in demand, with the index for new orders reaching 56.4—the fastest rate of growth for new business in four years. This trajectory contrasts sharply with the Rest of Ireland, which recorded its first contraction in new orders since Q3 2023 (49.7).

Despite the rise in output and new orders, job creation in Dublin remained modest, with the Employment Index at 51.2. Interestingly, the Rest of Ireland reported a faster pace of hiring, with its employment index rising to 52.3.

While the data indicates strong momentum for the Dublin economy, analysts warn that the outlook remains cautious. Ongoing geopolitical tensions in the Middle East have introduced significant uncertainty regarding future energy prices, the stability of supply chains, and broader business confidence.

Andrew Harker, Economics Director at S&P Global Market Intelligence, commented: "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."