2023.09.0114:38:00UTC+00Irish Economy Recovers Less Than Estimated

Ireland's economy expanded less than initially estimated in the second quarter after contracting in the previous two quarters, the latest data from the statistical office CSO showed on Friday.

Gross domestic product advanced a seasonally adjusted 0.5 percent sequentially in the June quarter, in contrast to a revised 2.6 percent fall in the March quarter.

The economy contracted 0.9 percent in the final quarter of 2022.

The overall expansion in the second quarter was mostly driven by 6.2 percent growth in multinational-dominated sectors, the agency said.

Modified domestic demand, a broad measure of underlying domestic activity covering personal, government, and capital formation spending, increased by 1.0 percent.

Data showed that personal spending on goods and services, a key measure of domestic economic activity, increased by 0.9 percent compared to the previous quarter.

Exports declined 4.1 percent, while imports showed a slight increase of 0.1 percent, resulting in a decline of overall net exports of 14.4 percent in the second quarter.

The balance of payments current account recorded a surplus of EUR 15.8 billion in transactions with the rest of the world in the second quarter of this year, the agency said.

On a yearly basis, seasonally adjusted GDP grew 2.7 percent from the previous quarter, when it contracted by 1.5 percent.

Survey results from S&P Global showed that the AIB Ireland Manufacturing Purchasing Managers' Index rose to 50.8 in August from 47.0 in July. Any score above 50 indicates expansion in the sector.

This was the first expansion in the Irish manufacturing sector in six months, driven by a fresh upturn in new orders.