Ireland: Services PMI picks up in November from October's multi-year low
December 5, 2016
The Investec Services Purchasing Managers’ Index (PMI) increased from 54.6 in October to 56.0 in November. The result reflected a faster expansion in activity, new business and employment. The index remains above the 50-threshold that separates expansion from contraction in the services sector, where it has been for over four years.
November’s print reflected a pickup in business activity growth and new orders in Ireland. Backlogs of work increased in November as service firms faced increased new business. Employment growth accelerated in November driven by higher volumes of new business. Regarding price developments, input prices roses on the back of higher costs insurance and staff costs, which ultimately contributed to increasing output costs.
According to the survey report, however, growth in demand still provides some positive news: “Our suspicion is that the worst of the pressures faced by the more external-facing parts of the Irish economy in the immediate aftermath of Brexit has passed, with the latest Investec PMIs for Ireland giving comfort to this view.”