The US dollar continues to hold its position as the world’s leading reserve currency, yet signs are emerging that its dominance is being steadily eroded. That view was outlined by Peter Brown, Managing Director of Bagot Investment Partners, who pointed to rising demand for alternative assets and growing structural concerns within the US economy.

Speaking on RTÉ radio, Mr Brown highlighted the strong performance of precious metals as an indicator of changing investor behaviour. Gold prices have risen sharply in recent years, while silver has seen even stronger gains, movements he believes reflect waning confidence in the long-term strength of the dollar.

He identified three key pressures contributing to the currency’s decline. The first relates to political uncertainty in the United States, particularly concerns about potential interference with the independence of the Federal Reserve. Such uncertainty, he argued, undermines confidence in US financial governance.

The second issue centres on the scale of US government debt and the challenge of continuing to fund it. Mr Brown noted that US government bonds were traditionally viewed as a safe haven, but confidence shifted after Russian assets held in US bonds were frozen. This prompted some countries to reconsider their exposure to US debt and instead favour assets such as gold and silver. As a result, demand at US debt auctions has weakened, raising concerns that the Federal Reserve may be forced to purchase more government debt itself, a move associated with quantitative easing and downward pressure on the dollar.

A third concern is the concentration of global investment in the United States. While the US accounts for roughly a quarter of global economic growth, it now represents about three quarters of the MSCI World Index. Mr Brown suggested this imbalance reflects years of heavy investment in US technology stocks, which he believes are now undergoing a correction. He views this rebalancing as a significant factor behind the dollar’s recent weakness.

For Irish consumers, a weaker dollar presents mixed outcomes. Travel to the United States and purchases of US goods become more affordable, while Irish exporters face higher costs when selling into the American market. Mr Brown noted, however, that exporters have not expressed significant concern, suggesting that profit margins remain strong despite the combined impact of tariffs and currency movements.

The more pressing issue, he argued, lies with pension holders whose investments are heavily weighted towards US equities. He cautioned that investors should reassess where future returns are likely to come from over the coming years, suggesting that growth opportunities may increasingly lie outside the US market.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

The UK economy recorded a stronger-than-anticipated expansion in November, supported by a rebound in manufacturing activity and improved performance across key sectors.

Official figures show that gross domestic product increased by 0.3% during the month, reversing a 0.1% contraction recorded in October. This outcome exceeded market expectations, with economists previously forecasting growth of 0.1%.

A significant contribution came from the industrial sector, where output rose by 1.1%. This was largely driven by a sharp recovery in car manufacturing following the resumption of normal operations at Jaguar Land Rover. Production at the carmaker and its suppliers had been disrupted earlier by a cyberattack, and the subsequent reopening of plants led to a substantial rise in vehicle output. The increase marked the strongest monthly gain in car production since mid-2020.

The services sector, which represents the largest share of the UK economy, also performed better than anticipated. Output increased by 0.3% in November, recovering from a decline of the same magnitude in October.

Earlier business surveys had pointed to signs of economic hesitation in the run-up to the Chancellor’s annual Budget statement in late November, as uncertainty around potential tax changes weighed on sentiment. Despite the monthly improvement, the broader outlook remains subdued. The Bank of England expects overall economic activity to have been flat across the final quarter of 2025, while estimating that underlying growth is running at approximately 0.2% per quarter.

Over the three-month period to November, the Office for National Statistics reported that the UK economy expanded by 0.1%, indicating modest momentum as the year drew to a close.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

Permanent TSB has announced a reduction in its variable interest rates for homeowners borrowing under the Government-supported Home Energy Upgrade Loan Scheme, aimed at improving energy efficiency and reducing household energy costs.

The scheme allows eligible homeowners to borrow between €5,000 and €75,000 to fund retrofit works such as insulation upgrades, heating improvements or solar installations. It is administered by the Strategic Banking Corporation of Ireland on behalf of the Department of Climate, Energy and Environment.

The revised rates, which apply from today, vary depending on the loan size. Borrowers taking out between €5,000 and €14,999 will now pay 4.15%, a reduction of 0.4%. Loans ranging from €15,000 to €24,999 are available at 3.75%, also down 0.4%. For amounts between €25,000 and €49,999, the rate has fallen by 0.5% to 3.35%, while the largest loans of €50,000 to €75,000 are now priced at 2.99%, reflecting a reduction of 0.56%.

Alongside the rate cuts, the bank has introduced a new online Home Upgrade Tool to help homeowners plan suitable energy improvements. The tool uses a property’s Building Energy Rating, where available, to recommend tailored retrofit packages. These range from comprehensive upgrades to individual measures such as attic insulation or solar photovoltaic panels.

The system draws on data from the national BER database maintained by the Sustainable Energy Authority of Ireland. Where a BER is unavailable, the tool estimates a property’s rating based on its location and information provided by the homeowner.

PTSB said the changes are intended to encourage more households to take practical steps to improve comfort and reduce long-term energy bills, particularly during colder months. The SBCI also welcomed the move, noting that lower borrowing costs can make energy upgrades more accessible and support wider participation in the scheme.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

Activity across Ireland’s construction sector declined again in December, marking the eighth consecutive month of contraction, according to the latest Purchasing Managers’ Index from AIB. The survey shows that output fell across all major segments of the industry, including residential, commercial and civil engineering, though the pace of decline eased in each area.

The headline Construction Total Activity Index remained below the 50 threshold that separates growth from contraction, signalling an overall reduction in output as the year came to a close. The index rose to 48.4 in December from 46.7 in November, indicating the slowest rate of decline since mid-2025. Residential construction recorded the mildest slowdown, with the softest fall in activity for seven months.

While overall activity continued to fall, the survey highlighted a more encouraging trend beneath the surface. New orders increased for the first time in five months, suggesting an improvement in underlying demand. In response, construction firms reported increases in employment, purchasing activity and the use of sub-contractors. Some respondents pointed to delayed project start dates as a drag on activity, while others noted stronger client enquiries towards the end of the year.

Business confidence also strengthened, reaching its highest level since January of the previous year. Firms reported growing optimism that activity will improve during 2026, supported by rising customer enquiries and a healthier pipeline of work. This more positive outlook contributed to a second consecutive month of growth in staffing levels and purchasing, alongside renewed demand for sub-contractors, which further tightened availability.

Cost pressures remain a concern for the sector. Companies continued to report difficulties sourcing materials, alongside a further sharp increase in input costs. Although inflationary pressures eased slightly compared with November, they remained elevated relative to the average levels seen during 2025.

Commenting on the findings, AIB Senior Economist John Fahey said the December figures point to a less severe rate of contraction heading into the new year. He noted that while activity remained weak across all subsectors, residential construction performed best, with the slowest decline since late spring. Commercial construction fell for a second month, while civil engineering remained the weakest area.

The return to growth in new orders is viewed as a particularly important signal for the months ahead. As a forward-looking indicator, it suggests that demand conditions may be starting to improve, providing a tentative foundation for recovery as 2026 approaches.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

A growing proportion of workers in Ireland believe they will need to remain in employment well beyond the traditional retirement age in order to make ends meet, according to new research from Royal London Ireland.

The latest Retirement Age Financial Feasibility Survey suggests that almost one in five workers expect they will not be able to afford retirement until the age of 70. For a much larger group, retiring before the State Pension age of 66 is seen as financially unrealistic, with more than six in ten respondents saying it feels beyond reach.

That said, the findings also point to a modest shift in confidence. While early retirement remains aspirational rather than achievable for most, a small but growing minority now believe it could be possible. Six per cent of workers say they are targeting retirement by 55, double the proportion recorded in the previous year’s survey. This increase is most pronounced among those aged 45 to 54, where expectations of retiring by 55 have risen sharply.

For many, retirement plans remain closely tied to the State Pension. Over half of workers expect to retire at 65 or 66, while fewer than four in ten anticipate leaving the workforce earlier. There is a clear gender divide, with men significantly more likely than women to believe they will retire before 66. At the same time, a rising number of people approaching retirement say they do not want to fully stop working at all, reflecting both financial pressure and changing attitudes to later-life employment.

The survey highlights an uncomfortable reality. Stable employment does not automatically translate into financial security in retirement. Rising living costs, uneven pension coverage and career breaks continue to shape expectations, particularly for women.

Against this backdrop, the planned introduction of auto-enrolment carries added weight. While it has potential to improve long-term outcomes, especially for younger workers, it will not on its own solve affordability concerns for those already nearing retirement. The results underline the importance of early planning and regular review, rather than assuming the State Pension age will align with personal financial readiness.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

Global unemployment is expected to remain broadly unchanged through 2026, according to new analysis from the International Labour Organization. While this headline figure may appear reassuring, the organisation warns that apparent stability in labour markets is concealing deeper structural weaknesses, particularly around job quality, security and access to decent work.

The ILO notes that the global economy has absorbed recent economic shocks more effectively than many had anticipated. However, this resilience has not translated into better working conditions for a large share of the global workforce. Around 2.1 billion people are expected to remain in informal employment this year, often without reliable income, social protection or enforceable labour rights.

Young people continue to face disproportionate challenges. Unemployment among those aged 15 to 24 is forecast to reach 12.4% in 2025, with an estimated 260 million young people worldwide not in education, employment or training. The ILO cautions that advances in artificial intelligence and automation could intensify pressures, particularly for graduates in higher-income economies attempting to enter skilled professions.

Gender inequality also remains deeply embedded in labour markets, with women accounting for only about two-fifths of global employment. The ILO stresses that stable employment figures alone are not a meaningful measure of labour market health, highlighting the importance of national policy decisions that prioritise secure, fair and productive work.

Globally, unemployment is projected to remain close to 4.9% through to 2027, equating to roughly 186 million people out of work. Yet this stability is described as fragile. Ongoing trade uncertainty, including rising tariffs and shifts in global supply chains, risks suppressing wage growth across both skilled and unskilled roles. Regions such as Southeast Asia, Southern Asia and Europe are expected to be particularly exposed.

The report also underlines how dependent employment remains on international trade, with an estimated 465 million jobs linked to foreign demand through exports and related supply chains. Disruptions in global trade flows could therefore have far-reaching consequences for employment levels and income security.

Beyond unemployment figures, the ILO draws attention to the persistence of extreme in-work poverty. Nearly 300 million workers worldwide continue to live on less than $3 per day, reinforcing concerns that economic growth alone is failing to deliver meaningful improvements in living standards for many households.

The findings serve as a reminder that labour market stability should not be confused with progress. Without targeted action to improve job quality, wages and inclusion, current conditions risk entrenching inequality rather than resolving it.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

The cost of sending letters in Ireland is due to increase from early February, with An Post confirming higher prices for both domestic and international mail.

From Tuesday 3 February, the price of a national stamp will rise by 20 cent, increasing from €1.65 to €1.85. This follows a previous increase of 25 cent introduced last February. International postage costs will also climb, with a new €3.50 rate applying to letters sent anywhere in Europe, including Britain. This represents an increase of 85 cent.

An Post said the revised pricing reflects global trends and remains below the European Union and UK benchmark for domestic next-day letter delivery, which stands at €2.04. A new “Rest of World” stamp priced at €3.95 will also be introduced. The company said this change is aimed at addressing sustained losses in international mail, with outgoing overseas letter volumes down by 38 percent over the past three years.

More than half of Ireland’s international post is sent to Britain, Germany and France. An Post stated that this was the reason for introducing a specific Europe and Britain rate, rather than applying the higher worldwide price. By comparison, the equivalent European stamp in the UK costs €3.90.

Further increases will apply to large envelopes, packets, over-the-counter parcels, Registered Post and digital stamp products. According to An Post, the revised charges are designed to support the continued delivery of a nationwide letter service, despite declining volumes and rising operational costs. Letter volumes have fallen by 7 percent in the past year and by more than half since 2016, with a similar decline expected in 2026.

Speaking about the increase, Micheál Martin described the higher cost of stamps as very challenging for consumers, while acknowledging that reduced usage has contributed to higher unit costs across the network.

An Post has emphasised its commitment to maintaining a next-day national delivery service to every address, supported by trained staff and a growing fleet of emission-free vehicles. The company also confirmed that existing stamps marked with ‘N’, ‘W’ or euro denominations will remain valid after the price change. Free delivery for letters and parcels up to 1kg sent to residents of nursing and care homes will continue.

For households and businesses, the increases highlight the changing economics of postal services and the growing impact of declining mail volumes on traditional delivery models.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

Activity across Ireland’s construction sector declined again in December, marking the eighth consecutive month of contraction, according to the latest Purchasing Managers’ Index from AIB.

The survey shows that output fell across all three areas covered, residential, commercial and civil engineering. The pace of decline eased in each category, with residential construction recording the mildest slowdown and its softest fall in seven months.

The headline seasonally adjusted Construction Total Activity Index remained below the 50 threshold that separates growth from contraction. December’s reading of 48.4 represented an improvement on November’s figure of 46.7 and indicated the slowest rate of decline since June 2025.

While overall activity remained subdued, the latest data points to improving underlying conditions as the year came to a close. New orders rose for the first time in five months, reflecting firmer client demand. In response, firms increased employment, purchasing activity and their use of sub-contractors.

Some respondents cited delays to project start dates as a factor behind lower activity levels. Others reported increased workloads linked to stronger customer enquiries, which supported the return to growth in new business during December.

Confidence builds heading into 2026

Business sentiment within the sector strengthened to its highest level since January of the previous year. Construction firms expressed growing confidence that activity will recover over the next twelve months, supported by rising enquiries and an improved pipeline of work.

The renewed increase in new orders encouraged companies to continue expanding staffing levels and purchasing activity for a second month in succession. Firms also increased their use of sub-contractors for the first time in six months, leading to reduced availability.

Despite these positive signals, challenges remain. Difficulties in sourcing materials persisted, and input costs rose sharply again. Although cost inflation eased from November’s recent peak, it remained above the average level recorded across 2025.

Commenting on the findings, AIB’s Senior Economist noted that the December index reading suggests a slower pace of contraction as the sector enters the new year. Weakness remained evident across all sub-sectors, though residential construction performed relatively better than commercial and civil engineering activity. The return to growth in new orders and continued job creation were highlighted as encouraging indicators for the months ahead.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

A significant proportion of people in Ireland believe that retiring before later life is financially unrealistic, according to new research on retirement expectations.

The latest Retirement Age Financial Feasibility Survey from Royal London Ireland shows that 18 percent of workers feel they will not be able to afford retirement until they reach the age of 70. For many others, stepping away from work before the State Pension age of 66 feels unattainable, with 62 percent saying early retirement is beyond their reach.

The nationwide survey of 1,000 adults highlights the financial pressure facing households as they plan for later life. Around half of respondents, 52 percent, expect to retire either at 66 or slightly earlier at 65. Fewer than four in ten anticipate retiring before the State Pension age, although expectations vary notably between men and women. Nearly half of men believe they will retire before 66, compared with only three in ten women.

Despite these challenges, the research suggests a modest shift in confidence. Six percent of workers now aim to retire by 55, double the figure recorded in the previous year. This optimism is particularly evident among those aged 45 to 54, where more than one in ten now believe early retirement is achievable.

The survey also points to a growing number of people who do not see full retirement as an appealing or practical option. Almost one in five respondents nearing retirement age said they never want to stop working entirely, an increase on last year. This sentiment is more common among women than men.

The findings arrive as Ireland prepares for the introduction of auto-enrolment into workplace pensions. The research suggests that consistent pension saving earlier in people’s careers could play a role in improving long-term retirement outcomes, particularly for younger workers and those with lower pension coverage.

For individuals and businesses alike, the message is clear. Retirement planning is becoming more complex, and early, informed financial advice is increasingly important.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

A new economic assessment suggests that significantly increasing digital investment among Irish small and medium-sized enterprises could deliver a substantial boost to the wider economy. The research estimates that doubling the current average level of digital spend by SMEs has the potential to add €8.3 billion to Ireland’s economic output.

The findings come from a report published by Digital Business Ireland, which indicates that many Irish SMEs have yet to reach the level of digital capability needed to compete effectively in modern markets. While adoption of basic digital tools has improved, the report argues that more advanced digital commerce systems remain underutilised across large parts of the sector.

Titled Taking Digital Commerce in Ireland to the Next Level, the research stresses that digital development should be treated as an ongoing process rather than a once-off upgrade. Businesses are encouraged to continually enhance their digital maturity, particularly in areas such as online sales platforms, data-driven marketing, and customer engagement technologies.

The report outlines several recommendations aimed at supporting this progression. These include the introduction of a second, higher-value tier of the Grow Digital Voucher, designed to help SMEs invest in more advanced digital commerce capabilities. It also proposes targeted tax incentives, including accelerated tax credits, to encourage sustained investment in digital systems rather than short-term improvements.

At a policy level, the report calls on the Irish Government to actively support positions at EU level that protect the ability of businesses to use personalised digital advertising. The authors argue that such tools remain critical for SMEs seeking to reach customers efficiently in competitive online environments.

Commenting on the findings, Victor Timon, Chair of Digital Business Ireland, said that digital transformation is an ongoing challenge for businesses. He noted that the pace of change continues to increase, driven by rapid innovation and the growing influence of artificial intelligence, meaning that businesses must constantly adapt to remain competitive.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.