Ireland: Services PMI inches up in September
October 5, 2015
The Investec Services Purchasing Managers’ Index (PMI) inched up from August’s 62.1 to 62.4 in September, approaching July’s record high. As a result, the index remains comfortably above the 50-threshold that indicates expansion in the services sector.
September’s slight improvement mainly reflects increasing new business and improving economic conditions. While total new orders grew at a slightly slower pace than in the previous month, new export orders recorded a notable expansion in September. Backlogs of work increased in September and employment continued to rise, even though at a slower pace than in August. Input cost inflation rose in September, mainly resulting from higher wages and salaries, and output prices also continued to increase.
According to the survey report, “taken together with last week’s Manufacturing PMI release, this report suggests a somewhat sharper rate of increase in activity at the end of Q3 for much of Ireland’s private sector. Looking ahead, with the Expectations index having ticked up modestly in September, we would anticipate further encouraging Services PMI readings into the New Year.”