Ireland: Services PMI inches up to record high in June
July 3, 2014
The services Purchasing Managers’ Index (PMI) inched up from 61.7 points in May to 62.6 points in June according to a release provided by Investec. June’s reading is the highest on record. Moreover, the index has been above the 50-point threshold that indicates expansion in the manufacturing sector since August 2012.
June’s expansion in business activity was driven by higher new orders from both domestic and export clients. Growth of new orders led companies to increase employment levels in June even faster than in May. Moreover, the forward-looking component that measures expected levels of business activity in the coming 12 months continued to reflect strong optimism. According to the survey report, “given the recovery underway both at home and across Irelands key trading partners, we believe that this confidence will prove well-founded and expect to see further strong Services PMI readings over the coming months at least.”
Author: Carl Kelly, Economist