Ireland: Services PMI moderates but remains strong in October amid growing optimism
November 6, 2014
The Investec Services Purchasing Managers’ Index (PMI) moderated from 62.5 in September to 61.5 in October, which marked the lowest level in three months. However, the index remains well above the 50-threshold that indicates expansion in the services sector, where it has been for more than two years.
October’s positive result was driven by improving economic conditions and ongoing expansion in the new orders category, including news exports business. Moreover, businesses increased staffing levels to meet new work demands and in response to expectations of further growth in the next 12 months. Inflationary pressures also built up during October. According to the survey report, the result, “provides continued evidence that services firms in Ireland are upbeat on their prospects. Following on the solid Manufacturing PMI release, the result serves as a further illustration of the recovery underway across the bulk of Ireland’s private sector at this time.”
Author: Carl Kelly, Economist