Business activity in Dublin rebounded in the second quarter, as Covid-19 restrictions eased and the economy reopened.
According to the latest IHS Markit Dublin Purchasing Managers Index, the headline jumped to 60.2 in the second quarter from 40.4 in the previous quarter, marking the fastest expansion since the final quarter of 2015.
Activity increased sharply across all three monitored sectors, led by manufacturing.
Output across the rest of Ireland also increased, and at a slightly stronger pace than seen in Dublin.
The reopening of the economy also saw a striking expansion in new orders which soared at their steepest rate for six years in the second quarter.
This ended five consecutive quarters of decline and signals the potential for robust activity in the coming quarters.
For the second sucessive quarter, companies in Dublin increased their staffing levels.
The rate of job creation accelerated from the previous quarter to its fastest since the first quarter of 2019.
Employment also returned to growth across the rest of Ireland, with the rate of expansion more marked than in Dublin.
Business activity in the capital and across Ireland continues to track the path of restrictions with this latest easing benefitting all sectors.
Although uncertainity linked to Covid-19 variants remains, Andrew Harker, Economics Director at IHS Markit said the rollout of the vacccination programme means the outlook is beginning to look more positive.
"The loosening of Covid-19 restrictions helped to breathe life back into the Dublin economy over the course of the second quarter, with the recovery from the pandemic now underway in earnest," he said.
"Companies in the capital, and across the rest of Ireland, will be hoping that this trend continues and that sustained growth can be secured over the rest of 2021 and into next year," he said.
