Ireland: Services PMI closes 2014 at record high
January 6, 2015
The Investec Services Purchasing Managers’ Index (PMI) increased from 61.6 in November to 62.6 in December, which marked a record high. The index has been above the 60.0 mark since March, well above the 50-threshold that indicates expansion in the services sector.
December’s positive result was driven by improving economic conditions and ongoing expansion in the new orders category, including both domestic and export businesses. Survey respondents noted that the increase in new business from abroad reflects strong demand in key markets, particularly the US and UK, as well as a rise in orders from the Middle East. Moreover, businesses increased staffing levels at the fastest pace on record. In addition, the forward-looking component that measures expected levels of business activity in the coming 12 months improved to the highest level since February.
According to the survey report, the result, “suggests that Irish services firms remain confident on the outlook for their businesses, despite the recent rise in global concerns.”
Author: Carl Kelly, Economist