Economic picture remains robust, despite geopolitical concerns, with signs of somewhat stronger global growth in early 2025. Core inflation remains sticky in many markets, with risks still tilted to the upside for inflation due to ongoing global trade tensions and high domestic wage pressure.

The AIB Irish Construction PMI survey for January showed a weak start to the year for the sector. The headline index fell back into contractionary territory, with a reading of 48.2 in January, down from 51.6 in December. This is the fourth time in five months that the index has been below 50, highlighting the subdued backdrop for building activity. However, adverse weather conditions in the month, especially Storm Éowyn had a dampening impact on overall construction levels.