Investment spurs Irish domestic economy in second quarter

Consumers increased spending on services post-lockdown
Finance Minister says outlook weakening considerably
Higher prices pulling down real effect of consumption

DUBLIN, Sept 2 (Reuters) – Ireland’s domestic economy grew by 4.3% quarter-on-quarter from April to June, data showed on Friday, mainly driven by a pick up in investment in items such as plant and machinery as consumers also began to spend again on services.

Modified domestic demand (MDD), which strips out some of the ways Ireland’s large multinational sector distorts measuring economic activity, was 10.6% higher than in the same period in 2021 when the economy was emerging from a strict lockdown.

MDD had fallen by 0.1% quarter-on-quarter in the first three months of the year.

Gross domestic product (GDP), a broader measure of economic activity, grew by 1.8%…