Ireland PMI December 2019

Ireland

Ireland: Services PMI jumps to six-month high in December

January 6, 2020

Business activity in the Irish service sector accelerated markedly in December, as reflected by the AIB service Purchasing Managers’ Index (PMI) rising to 55.9 from 53.7 in November. The index, thus, moved further above the critical 50-threshold that separates expansion from contraction in business activity, signaling growth in the services sector and marking the best reading since June 2019.



December’s reading reflected a continued pick-up in business activity, while new business rose at the fastest clip in six months amid a quicker expansion in new export orders. Although firms hired more workers to address increasing workloads, the pace of job creation slowed to a three-month low. That said, it remained solid overall. On the price front, input cost inflation rose further in December; albeit at a slightly slower pace compared to November. Meanwhile, output charge inflation was little-changed. Lastly, business sentiment strengthened to a 17-month high as service providers turned more optimistic on their one-year outlook amid reduced Brexit uncertainty.

FocusEconomics Consensus Forecast panelists expect fixed investment growth to come in at 4.2% in 2020, which is down 1.9 percentage points from last month’s forecast. For 2021, the panel sees fixed investment growth at 3.2%.


Author:, Economist

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Ireland Services PMI December 2019

Note: Investec Services PMI. Readings above 50 indicate an overall increase in business activity compared to the previous month, and below 50 an overall decrease.
Source: AIB and IHS Markit.


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