Ireland: Irish Services PMI drops from post-Brexit high in February
February 3, 2017
The Investec Services Purchasing Managers’ Index (PMI) dropped from January’s post-Brexit high of 61.0 to 60.6 in February. The result reflected an expansion in activity, new orders and employment. Despite the drop, the index remains above the 50-threshold that separates expansion from contraction in the services sector, where it has been for over four-and-a-half years.
New business expanded for the fourth consecutive month and new export orders expanded markedly and grew at the fastest pace since July 2016. Business activity increased on the back of improved economic conditions and higher new orders. Increased demand and strong expectations of improving economic activity pushed service providers to hire more staff to meet higher demand. Regarding price developments, input costs and output prices rose.
The survey report went on to discuss the result of the forward-looking business activity outlook and commented that, “the forward-looking Business Expectations component shows that firms remain very optimistic on the outlook for the sector. Across the services industry circa 14 times as many firms expect to see a rise in activity over the next year as against those who are pessimistic about the outlook.”