The latest AIB S&P Global Purchasing Managers’ Index (PMI) revealed a slight decline in Irish services sector growth, yet the new export business rate rose to its highest level since July of last year and business expectations improved. The index showed a drop to 57.0 from 58.4 in April, yet still comfortably above the 50 mark that separates growth from contraction.
Employment and prices charged were both down, yet the new export business rate increased and the business expectations index rose to its second highest level in fifteen months. This points to a continued robust rate of growth, according to AIB chief economist Oliver Mangan.
Irish services firms experienced a ‘steep increase’ in new business volumes, both at home and abroad, and Mangan stated that the data suggests a strong demand for services. This is further reaffirmed by the improved new export business rate.
Overall, the AIB survey provides evidence of a slight slowdown in growth of the Irish services sector, yet there is still plenty of positive news. New export business is up and business expectations are positive, indicating that the sector is still on a strong upward trajectory.
