Ireland: Services PMI records worst reading since March in December
The IHS Markit Services Purchasing Managers’ Index (PMI) came in at 55.4 in December, down from November’s 59.3. December’s result marked the worst performance since March. As a result, the index remained entrenched above the 50-threshold, signaling a continued, albeit weaker, improvement in business conditions from the previous month. The index now remains only slightly above its long-run survey average.
The weaker figure came as activity and new work growth hit nine-month lows. The transport, tourism and leisure sector slid into contraction, with the sector vulnerable to the surge in Covid-19 cases that took place in December. In a testament to ongoing supply bottlenecks, both backlogs and input prices increased, but at softer rates amid weaker demand. Nonetheless, firms continued to see growth prospects in 2022 as being favorable, with sentiment increasing slightly on last month.