Ireland: Services PMI inches down to over-one-year low in April; remains in expansionary territory
May 6, 2015
The Investec Services Purchasing Managers’ Index (PMI) inched down from March’s 60.9 to 60.6 in April, the lowest level in 14 months. Despite this moderation, the index remained well above the 50-threshold that indicates expansion in the services sector.
April’s moderation mainly reflected that new export orders rose at a slower pace than in the previous month. Conversely, overall new orders grew at a faster pace than in March and businesses were more confident regarding the economic conditions in the coming year as they expected higher output. In addition, backlogs of work and employment continued to rise. Input costs rose for another month, mainly resulting from higher salaries, and output prices recorded a significant increase in April.
According to the survey report, April’s reading, “again reveals strong growth in activity in the sector, albeit at a somewhat slower pace than had been seen in previous months. …Taken in tandem with last week’s Investec Manufacturing PMI Ireland release, it seems that the overall narrative is one of continued growth, albeit at a slightly slower pace, at the start of Q2 2015.”