Thursday 29 September 2016

Service sector growth reaches nine-year high

Published 06/08/2015 | 08:46

Irish services sector PMI grew strongly last month
Irish services sector PMI grew strongly last month

Growth in the country's services reached a nine-year high in July, marking three years of unbroken expansion, as new business rose to levels last seen a decade and a half ago, a survey has shown.

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Ireland's economy grew by 6.5pc year-on-year in the first three months of 2015, data showed last week, on track to become the fastest-growing economy in Europe for the second year running in 2015.

The Investec Purchasing Managers' Index of activity in services, which covers businesses from banks to hotels, rose to 63.4 in July from 63.3 in June. The new business sub-index climbed to 66.2 from 63.7 in June, the third-highest mark since the series began in 2000.

The index has stayed above the 50-point line that separates growth from contraction since July 2012. A comparable survey gave a reading of 54.0 for the euro zone a whole.

"It is clear that services firms in Ireland retain a high degree of optimism on the outlook for their sector," Investec Ireland chief economist Philip O'Sullivan said.

"Given the improving dynamics around the domestic economy and the continued tailwind to exports from favourable FX moves, we believe that this positivity is well-founded."

Reuters

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