The economic recovery in the capital gathered momentum as the summer ended, providing a stimulus for many sectors of the economy, the latest Dublin Economic Monitor concludes.

The Monitor - which compiles information from a number of sources - is published by the four Dublin Local Authorities.

This latest study relates to the three months to the end of September as the reopening of the economy continued apace.

Private sector business activity in Dublin continued to expand in the period, according to IHS Markit Purchasing Managers' Index (PMI).

The expansion was more robust than that seen in the second three months and was the strongest reading since 2014 as businesses took on more staff and new orders in anticipation of growth.

According to data from MasterCard, retail spending in the capital surged, aided by considerable pent-up consumer demand and the lifting of Covid-19 restrictions.

Spending by consumers in the retail sector expanded by almost 15% in the quarter and by 10.5% year-on-year to reach the highest point since the series began in 2014.

Dublin’s labour market also gathered momentum over the months up to October 2021 with the unemployment rate on the capital falling to 6% amid sizeable increases in employment levels in the services and construction sectors in particular.

Residential construction in Dublin continued to ramp up in the quarter with house completions remaining relatively stable in the quarter but will be expected to rise as the strong pipeline of commencements feeds through to the housing stock in 2022.

"The data in this Dublin Economic Monitor, particularly the consumer spending and labour market indicators, suggests that the economy has been shifting through the gears to deliver the long hoped for 'bounce back'," Andrew Webb, Chief Economist with Grant Thornton, said of the report's findings.

"The expectation is that the recovery will sustain into 2022 but notes of caution around inflation, labour shortages and Covid-19 cases are growing louder," he added.