Dublin Business Activity Shows Solid Increase in Q4

The latest PMI survey from S&P Global shows that business activity in Dublin’s private sector increased solidly during the fourth quarter of 2025. 

The headline rate stood at 53.2, up from 50.8 in Q3, marking a one-year high in the pace of expansion. Importantly, the index continues to sit above the 50-point threshold, indicating activity remains in expansion territory. Activity across the Rest of Ireland also increased, albeit at 51.9, growth remained lower than in the Capital.

In terms of sectoral performance in Dublin, the Services (55.5) and Construction (55.1) sectors both recorded notable increases in output, with the Services sector recovering from a contraction in Q3 (49.4). In contrast the Manufacturing sector dipped to 49.4, entering contraction territory for the first time in three quarters. The Rest of Ireland showed strong growth in the Services (53.3) sector, while the Construction (50.1) and Manufacturing (51.6) sectors also recorded an expansion over the period.

New business in Dublin continued to grow during Q4, with the New Orders component increasing for the second successive quarter to 51.7. Although the rate of expansion during the period was modest, it had accelerated from that seen in Q3. The pace of increase in new business in the Rest of Ireland was in line with Dublin, with the index at 51.7.

Employment decreased marginally in Dublin at the end of 2025, with a quarterly fall in staffing levels recorded for the first time in five years. The Employment Index decreased to 49.8, from 52.3 in Q3. Other employment data also shows signs of softening and so is worth keeping an eye on. In contrast, staffing levels in the Rest of Ireland continued to rise during the quarter where the index stood at 51.7, a slight increase from Q3.

Commenting on the PMI, Andrew Harker, Economics Director at S&P Global Market Intelligence said:

“There were mixed signals from the Dublin PMI data at the end of 2025. On the positive side, output growth quickened amid marked increases in business activity in the services and construction sectors. In fact, the all-important service sector posted the fastest expansion since mid-2023, shrugging off the third-quarter soft-patch. Less positive was a first reduction in employment in five years, perhaps reflective of the more muted output requirements seen earlier in 2025. If business activity continues to rise at a similar pace in early-2026 as in the final quarter of last year, firms will likely be looking to take on extra staff again soon.”

ENDS