Ireland: Services PMI grows at quickest pace since June 2006 in November
December 4, 2015
The Investec Services Purchasing Managers’ Index (PMI) increased from October’s 60.1 to 63.6 in November The index is now further above the 50-threshold that indicates expansion in the services sector and November marks the fortieth consecutive month of growth in the sector. November’s increase is also the strongest result since June 2006.
November’s reading mainly reflects an increase in client confidence, which led to a growth in new business. The Ivestec report emphasized that client confidence and stronger economic conditions are expected to be the key drivers of growth in 2016. Growth of new orders and new exports orders also picked up in November with new export orders tallying the fastest rate of expansion since September 2014. As new orders increased, backlogs of work also expanded significantly. This increase led to the highest level of expansion in the employment component since the survey began in 2000.
According to the survey report, “more than four times as many panelists reported growth in New Business against those who saw a decrease in November. In a further sign of the broad nature of the expansion in new orders that is being experienced by services firms, all four of the segments within the sector that are captured by this survey […] simultaneously reported increased in New Business, as indeed they have for 30 successive months now. We are also pleased to see that the rate of growth in New Export Business quickened to a 14 month high, with demand from clients in the UK, US and Middle East credited with this outturn”.