Irish economy shrinks for second consecutive quarter, latest PMI report says

Ireland’s economy shrank for the second straight quarter in July, but that is not a cause for alarm as the country’s central bank expects the economy to expand by 2.3% this year.

Key points:Economy grew by 2% in July compared to the same month last year, but unemployment remains highKey points :The central bank said that unemployment is now at a record high of 11.5% in the country and the unemployment rate remains highInflation rose by 0.2% last month to hit a record 1.1%.

The Bank of Ireland said on Thursday that its monthly growth rate fell to 2.4% in June from 2.7% a month earlier.

The fall was largely attributed to a weaker pound, but the central bank noted that the currency is “still well above the level at which it was at in the second quarter of 2015”.

The figures were down from the 3.4%.

In the second half of last year the bank said inflation rose by 2%.

The economy shrilled by 1.3 percentage points in the three months to June, its weakest rate since February.

The economy contracted by 0% in August and 0.3 points in September, the lowest monthly rate since January 2014. 

The latest report from the Bank of England, released on Thursday, also showed the economy was contracting by 0%, a record low.

The bank said it had already revised down its growth forecasts for the next quarter to 0.8% from 0.9% last year.


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