According to the Gross Domestic Product, the economy expanded by 2.3% between July and September of this year. However, activity in the domestic economy measured by Modified Domestic Demand fell by 1.1%.
At the end of September, the economy as measured by GDP expanded by 10.9% annually while the economy as measured by Modified Domestic Demand expanded by 5.9%.
Though it did grow modestly by 0.3%, consumer spending slowed over the third quarter, roughly in line with expectations.
Paschal Donohoe, the minister of finance, noted a slight slowdown in the domestic economy during the third quarter.
“Whilst GDP continues to grow strongly, this does not reflect events on the ground in the domestic economy, given the outsized role the multinational sector plays in our economy. Modified domestic demand, our preferred measure of domestic economic activity, decreased by -1 percent in the third quarter,” he said.
“However, this modest decline in activity largely reflects a return to trend for investment following an exceptionally high level in the second quarter, which was largely driven by multinational investments in plant and machinery.
“Consumer spending slowed over the third quarter, broadly in line with expectations, though it did grow modestly, an encouraging outcome considering the headwinds households continue to face. This resilience reflects the strength of the labour market, with well over 2½ million people in employment, a record level, and an unemployment rate of just 4.4 per cent in November,” Minister Donohoe said.
The Minister stated that the Department’s projections, which were released last September at the time of the Budget, are very much in line with today’s data as well as the employment data released last week.