DAVY VIEW

Recent days have seen several new reports and data releases. The Mid-Year Expenditure Report (MYER) reiterates the Government’s aim, outlined in last week’s Summer Economic Statement, to target spending efficiency in Budget 2027. However, we find that since 2019, spending growth has not been misaligned compared to underlying growth in the Irish economy. Elsewhere, flash data for July inflation at 3.1% were in line with our forecast, whereas Q2 gross domestic product (GDP) growth of 3.9% was slower than our implied forecast.