Personal spending on goods and services grew by 1pc between April and June, when the uncertainty was at its peak, according to the Central Statistics Office. It was up 3.25pc compared to the same quarter of last year.
Consumer confidence helped the domestic economy to grow by 0.6pc in the second quarter, and it was up 3.75pc in the first half of the year on an annual basis.
The continuing growth in consumer spending is a reflection of an economy with virtually full employment, while workers have enjoyed a 3.7pc increase in wages over the last year.
Gross Domestic Product (GDP) grew by 0.2pc in Q2, but expanded by over 18pc in the first half of the year, driven by a huge surge in exports to America in advance of Trump’s tariffs.
Dr Loretta O’Sullivan, chief economist at EY Ireland, said: “The rush by businesses to get ahead of US policy shifts is evident in the figures. Tariff front-running by the pharmaceutical sector in particular buoyed exports and GDP in the first quarter of 2025, but this activity moderated somewhat in the second quarter.
“Looking past these trade-related distortions and at domestic indicators, it is encouraging to see that record high employment is lending support to consumer spending, which expanded at a good pace in the first six months of the year.”
In a statement Finance Minister Paschal Donohoe said he was particularly encouraged by the increase in investment in the second quarter, which was up 7pc on an annual basis, which he attributed to activity in construction.
“Figures from today’s release confirm the strength of the economy in the first half of the year. Looking forward, however, the international outlook remains very challenging,” he said.
“While the Government welcomes the degree of certainty provided by the Framework Agreement between the EU and the US on trade published last month, the imposition of widespread tariffs will weigh on growth over the coming years.”
Given the more challenging external environment, Mr Donohoe added, it is important that Government policy remains focussed on boosting the resilience of the Irish economy. “That is why Budget 2026 will be framed around investment. This will help maintain competitiveness and boost productivity which is the foundation for long-term improvements in living standards.”
While the stockpiling of Irish goods in American warehouses has come to an end, Irish exports are still performing strongly. The CSO said that the balance of payments current account recorded a surplus of €19.5bn in transactions with the rest of the world between April and June.
Janette Maxwell, a tax partner at Grant Thornton, said: “Ireland continued to demonstrate strong international trade performance in the second quarter, with notable surpluses in both goods and services.
“Exports of goods reached €95bn, significantly outpacing imports of €36bn, resulting in a robust trade surplus of €58.4bn. This reflects Ireland’s continued strength in high-value sectors such as pharmaceuticals, technology, and agri-food.”
Services exports totalled €123bn in the second quarter, and remains and important driver of Ireland’s economic performance, due to strength in IT and financial services.
“Overall, Ireland recorded a combined surplus of €70.8bn in goods and services trade, underscoring its strong global economic engagement and competitiveness,” Ms Maxwell said.
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