Friday 22 November 2019

Service sector growth improves in September but still short of July nine-year high

Irish services sector PMI recorded an increase in growth last month
Irish services sector PMI recorded an increase in growth last month

Conor Humphries

Ireland's services sector grew at a slightly faster rate in September although it remained short of July's nine-year high, a survey showed on Monday.

The Investec Purchasing Managers' Index of activity in services, which covers businesses from banks to hotels, climbed to 62.4 from 62.1 in August but remained July's 63.4.

The index has stayed above the 50-point line separating growth from contraction for over three years.

In a sign of growing buoyancy in the economy, the subindex monitoring prices charged by service providers climbed to 55.2 from 52.2, while input prices rose on higher wages.

"Taken together with last week’s Manufacturing PMI release, this report suggests a somewhat sharper rate of increase in activity at the end of Q3 for much of Ireland’s private sector," Investec Ireland chief economist Philip O'Sullivan said. The

manufacturing index reported last week climbed to 55.3 from 55.1.

"Looking ahead, with the Expectations index having ticked up modestly in September, we would anticipate further encouraging Services PMI readings into the New Year."

Detailed PMI data are only available under licence from Markit and customers need to apply to Markit for a licence.


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