Growth in services sector falls to seven month low
Growth in the Irish services sector eased to a seven month low during October, amid a slowdown in the rate of expansion in new orders and strong inflationary pressures.
This is according to the latest Services Purchases Managers Index (PMI) from ISH Markit.
It follows last week's manufacturing data which showed that manufacturing output also increased at the slowest pace in seven months in October.
Overall and the PMI - an indicator designed to provide a single-figure measure of the health of the services industry - posted 57.2 in October, down from 58.7 in September.
Any reading over 50 is deemed growth, therefore the data still signalled a substantial monthly increase in activity across the Irish service sector.
Volumes of new work from abroad continued to increase strongly, albeit at a slower pace than in September. Panellists commented on increased orders from the UK and greater overseas orders.
Job creation in the sector picked up to a ten-month high, with anecdotal evidence from panellists indicating that an increased level of customer orders and investment encouraged them to hire additional staff.
Both input prices and output charges increased at quicker rates during October.
Firms reported passing on increased business costs such as insurance rates to customers.
Looking forward and service providers were optimistic regarding activity over the coming year. Expectations of increased customer orders as well as an improving Irish economy were stated as reasons behind optimism. Confidence was broadly in line with that seen in September, the report found.