Ireland PMI November 2016

Ireland

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.”

FocusEconomics Consensus Forecast panelists expect investment to expand 7.8% in 2016, which is unchanged from last month’s forecast. For 2017, the panel sees investment rising 7.1%, which is also unchanged from last month’s forecast.


Author: Jean-Philippe Pourcelot, Economist

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Ireland PMI Chart


Ireland Services PMI November 2016

Note: Investec Services PMI. Readings above 50 indicate an expansion in the services sector while readings below 50 indicate a contraction.
Source: Investec and IHS Markit.


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