Monday 26 June 2017

Services sector continues growth but hints of Brexit concern - Investec PMI

A Union Jack hangs alongside an EU Flag. Photo: PA
A Union Jack hangs alongside an EU Flag. Photo: PA
Gavin McLoughlin

Gavin McLoughlin

Activity in Ireland's services sector rose sharply in June, though growth dipped slightly from the previous month.

Investec's latest purchasing manager's index posted a headline rate of 61.2, down from 61.7. A figure above 50 indicates expansion.

The specialist bank noted that most responses to the survey came before the result of the Brexit referendum was known.

"The individual components of the Services PMI suggest cautious positioning on the part of firms and their clients ahead of the vote, with most increasing at a slower pace than in the previous month," Investec Ireland chief economist Philip O'Sullivan said.

"The New Business component rose at a sharp but reduced pace in June, with more than three times as many panellists reporting a rise in new business against those who signalled a decline. The rate of growth in New Export Business moderated slightly in June, with some panellists signalling reduced interest from UK clients."

The rate of job creation fell to a 25-month low, which Mr O'Sullivan said was unsurprising given global economic uncertainty. The business expectation component also fell sharply.

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