Ireland: Services PMI moderates in October
November 5, 2018
The Investec service Purchasing Managers’ Index (PMI) fell to 57.2 points in October from 58.7 in September and the lowest print in seven months. While the index remained above the critical 50-point threshold that separates expansion from contraction in the sector, where it has been for more than five years, the drop indicates a moderation in the pace of expansion of the Irish services sector.
Buoyant demand from domestic and international markets fueled strong upturns in output and new orders in October, with the technology, media and telecoms sector posting the sharpest rise, although the overall rate of increase in both production and new business eased from the previous month. Despite moderating activity, firms continued on a robust hiring drive, which resulted in a softer rate of accumulation in outstanding business. Input prices picked up again in October, prompting firms to increase their output charges. Irish service providers remained upbeat over demand and on their outlook of the Irish economy, with sentiment sustained at largely the same level as seen in September.
Author: Nihad Ahmed, Economist