Ireland: Services PMI climbs to record-high in June
July 3, 2015
The Investec Services Purchasing Managers’ Index (PMI) jumped from May’s 61.4 to 63.3 in June, the highest level in the survey’s history. As a result, the index moved further above the 50-threshold that indicates expansion in the services sector.
June’s improvement large reflected that business activity recorded the largest expansion since 2006. In addition, new business growth accelerated for a third straight month, leading to a rise in backlogs of work. Employment continued to rise in June, even though at a slightly slower pace than in May. Conversely, growth of new export business moderated compared to May. Regarding price developments, input price inflation picked up to the highest level since 2008, owing to the weak euro, which increased the cost of imported inputs, as well as increased costs for fuel and staff. In response to higher input costs, companies increased their output charges for a 15th straight month.
According to the survey report, “the latest Investec Services PMI Ireland report reveals the strongest rise in activity for the sector since September 2006 […]. Activity has now risen in each of the past 35 months, while nearly five times as many panellists have reported a rise in activity against the number that are experiencing a decline.”