The domestic economy grew by around 3.5% in June when compared to the same month last year, according to a new estimate from the Economic and Social Research Institute (ESRI).
That compares to estimated Modified Domestic Demand (MDD) growth of 3.1% in May, the ESRI said.
“While June saw a further tightening of financial conditions and more negative business sentiment indicators than 12 months ago, there were strong improvements in retail sales as well as an increase in industrial production from 12 months ago,” the ESRI said.
“Based on a full complement of data from April, May and June, our final nowcast estimates MDD for 2023Q2 to be 3.4% above its level in 2022Q2, up from the 3.3% estimate last month.”
The data is contained in the ESRI’s latest Nowcast – a flash estimate of domestic growth produced by the institute each month.
In the Summer Economic Statement, the Department of Finance forecasted that for the full year MDD would grow by at least 2.1%, with potentially some upside potential to this projection.
It said the generally positive economic conditions, underpinned by strong household balance sheets and a robust labour market, are expected to continue into next year, resulting in MDD growth of 2.5%.
Last year MDD grew by 9.5%, the CSO confirmed in July.