Ireland: Services PMI improves in May; continues to point to expansion
June 4, 2015
The Investec Services Purchasing Managers’ Index (PMI) rose from April’s 14-monthlow of 60.6 to 61.9 in May. As a result, the index moved further above the 50-threshold that indicates expansion in the services sector.
May’s improvement mainly reflected that business activity and new orders rose at a faster pace than in April, driven by improving general economic conditions. In addition, employment recorded a notable increase in May. Regarding price levels, input prices rose on the back of a weak euro and higher staff costs and translated into a solid rise in output charges.
According to the survey report, “it is encouraging to see that the headline Investec Manufacturing and Services PMIs for Ireland both improved to three month highs in May. In terms of the outlook, we share the optimism of the respondents to today’s report and expect to see further strong readings over the coming months at least.”