Ireland skyline

Ireland PMI October 2020

Ireland: Services PMI improves, but remains in negative territory in October

The AIB services sector Purchasing Managers’ Index (PMI) rose to 48.3 in October, from 45.8 in September. However, the index remained below the 50-threshold that separates contraction from expansion in business activity for the second consecutive month.

October’s reading largely reflected a continued decrease in activity—albeit at a softer pace than in September—as new business contracted due to frail demand conditions amid renewed Covid-19 restrictions and increased uncertainty. The overall level of outstanding business fell for the eighth month running, pushing firms to cut staff levels again, albeit at a slower rate compared to the previous month.

On the price front, input costs rose in October due to higher freight charges and costs related to remote working adjustments. As such, firms increased output charges for the second month straight and at a quicker pace than in September. Lastly, although the outlook was positive in October, sentiment slipped to the weakest level since May largely owing to increased uncertainty over the evolution of the pandemic and its related restrictions, as well concerns over a no-deal Brexit.

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