Ireland: Services PMI climbs to six-month high in May
June 6, 2019
The Irish service sector accelerated markedly in May, as reflected by the AIB service Purchasing Managers’ Index (PMI) rising to 57.0 from 54.7 in April. May’s reading thus moved further above the critical 50-point threshold that separates improvement from deterioration in business conditions and marked the fastest expansion in six months.
Output and new orders climbed more rapidly, thanks to stronger demand amid improving economic conditions and more successful marketing initiatives. Service providers increased their in-take of workers at a faster rate to deal with the sharp rise in backlogs of work. Meanwhile, on the price front, higher fuel and staff costs pushed up input prices, which prompted firms to raise their output prices. Looking ahead, business sentiment strengthened on an improved outlook on activity supported by projections of higher new orders and increased investment.
Author: Nihad Ahmed, Economist