May services sector at seven-year high but slows slightly
Published 05/06/2014 | 07:58
IRELAND'S services sector slowed slightly in May as expansion in employment and new exports slowed slightly.
The Investec Purchasing Managers' Index of activity in the sector slipped down to 61.7 in May from 61.9 in April - it was its highest reading since 2007.
However, it was still far above the 50 point mark that differentiates growth from shrinkage and was near a seven-year high.
"While most components in today's report point to a moderation in the rate of expansion, we would not be particularly concerned given that the white-hot rate of growth recorded in the sector during April was unlikely to be maintained for long," Investec Ireland's chief economist Philip O'Sullivan said.
"Taken together with the decent manufacturing PMI report earlier this week, today’s release bodes well for the performance of the wider Irish economy during the second quarter and beyond," he said.
Apart from job creation and new export business, all of the services sub-indexes showed expansion.