New data from the four local authorities found the possibility of a recession in the capital is now ‘increasingly likely‘.
Spending is down by 8.1% in the first three months of this year compared to the last quarter of 2021.
The Dublin Economic Monitor has found that the economic outlook for the city looks less than luminous.
Mastercard data from the capital’s four local authorities found that consumer spending in the first quarter of 2022 plunged by 8.1%. It was especially pronounced in department and clothing stores where people spent 28.3% less than in the previous quarter.
Unemployment also crept up by 0.4% to 5.8%.
There is a growing clues in the data to suggest a recession is increasingly likely according to Andrew Webb, chief economist at Grant Thornton who explained “Cost of living pressures are pushing consumer and business sentiment into more downbeat territory, reflected in MasterCard SpendingPulse data and a softening of new job listings.
“All eyes are now on consumers to see if downbeat sentiment turns to reduced spending, prompting an economic downturn.”
The war in Ukraine is another cause of economic misery; the country is usually a huge exporter of grain and sunflower oil but has struggled to get its goods to global markets in recent months.