Ireland: Services PMI drops to five-month low in November
The AIB services sector Purchasing Managers’ Index (PMI) dropped to 45.4 in November from October’s to 48.3, marking the lowest reading since June. Consequently, the index fell further below the 50-threshold that separates contraction from expansion in business activity.
November’s reading chiefly came on the back of declining total activity, with the sharpest fall registered in the tourism and leisure sector. Meanwhile, new business contracted at a slower rate compared to the previous month. Regarding the labor market in the sector, employment fell for the ninth month straight, albeit the rate of job shedding eased. On the price front, input cost inflation rose to a nine-month high, while output charges fell for the first time in three months. Lastly, sentiment among services sector firms rose to a ten-month high as the outlook for the year ahead was positive amid increasing hopes of a Covid-19 vaccine in 2021.