The pace of recovery from the economic slowdown brought about by the pandemic restrictions has eased in recent weeks, according to an analysis by Davy.
In a research note, chief economist Conall Mac Coille cites real-time data, which showed economic activity recovering sharply early this month after phase 3 of the Government’s re-opening plan began on June 30.
However, the latest data suggest that the pace has eased.
“Daily personal debit and credit spending averaged €196 million in the week to July 21, down from €199 million on July 14. Apple/Mobility data on driving and workplace activity paint a similar picture of a more gradual improvement,” he said.
Davy’s analysis also concludes that the recovery in the labour market is ahead of earlier forecasts with the unemployment rate now standing at 15.7% – down from a peak of 28% in April.
However, what it refers to as the ‘easy jobs gains’ since the beginning of phase 3 were now showing signs of dissipating.
Activity in the housing market has continued to accelerate, in contrast to other sectors, the report concludes.
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