Ireland skyline

Ireland PMI January 2019

Ireland: Services PMI continues to slide at the outset of the year

The Irish service sector continued to lose strength at the outset of the year, with the AIB service Purchasing Managers’ Index (PMI) declining to 54.2 in January from 56.3 in December. The index, thus, moved closer to the critical 50-point mark that separates expansion from contraction in the services sector; it has remained above the threshold for over five years now. January’s print reflects the weakest expansion in service sector activity since May 2013. That said, the reading still represents a solid pace of expansion in the sector and sits well above well above the flash January Services PMI for the Eurozone, which was 50.8.

Weaker growth in output and new orders, owing to less favorable demand conditions, underpinned the fall in the index. As a result, backlogs of work rose at a slower pace, with the rate of accumulation the weakest in over two years. Moreover, the rate of employment eased considerably. On the price front, input prices rose—mainly on higher staffing costs—although the increase in overall costs was more moderate in January compared to the previous month. Service providers hiked up their output prices in response, albeit at a slower rate, to pass the burden of cost adjustment onto consumers.

Commenting on January’s print, Oliver Mangan, AIB Chief Economist, stated:

“Overall, though, the January AIB Services PMI signals a somewhat slower start to 2019 for the economy, after the robust rate of expansion recorded in the past number of years. It suggests that growth in the Irish economy is likely to slow this year, which is hardly surprising given the loss of momentum in the global economy in recent times.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest