The most recent Irish Quarterly National Household Survey (QNHS) has been released today. 

Since the Brexit referendum, many short-term indicators have softened. The composite PMI fell to 54.0 in October, the weakest survey reading since mid-2013. Companies in both manufacturing (52.1) and services (54.6) have cited sterling’s weakness and broader Brexit-related uncertainties as holding back orders.

There have been worrying signs that the weakness in the export sector is feeding into the domestic economy. Retail sales in September fell by 0.3% on the month, up 3.7% on the year. Again, this is a healthy rate of expansion, but the weakest since 2013. Tax revenues also fell by 4.0% in the year in October, though this may reflect volatility and they are still up 4.7% in the first ten months compared with 2015.

Irish employment grew by 1.0% in the second quarter 2016, and by 0.8% in the first quarter. Annual employment growth was 2.9% in the year to second quarter, an exceptional pace by European standards. Moreover, private sector jobs grew at an even sharper pace, up 3.6% on the year.

According to Davy Stockbrokers, "Today’s Quarterly National Household Survey (QNHS) labour market release is the most important barometer of the health of the Irish economy since the UK’s decision to leave the European Union in June."

They added, "On balance, we expect another robust quarter of jobs growth despite signs that Brexit-related uncertainties and sterling’s depreciation are weighing on export sectors."

Source: www.businessworld.ie