Ireland: Services PMI remains strong in July
August 6, 2014
The Investec Services Purchasing Managers’ Index (PMI) fell slightly from June’s record high 62.6 to 61.3 in July. However, the index remains well above the 50-threshold that indicates expansion in the services sector, where it has been for two years.
July’s positive result was caused by ongoing strength in the new orders category, driven by demand from domestic clients as business confidence reached the highest point since February. New business from export clients abroad was also up. Higher new orders led companies to increase employment levels for the 23rd month running. Some businesses also indicated that they increased staffing in anticipation of further increases in workloads. Moreover, the forward-looking component that measures expected levels of business activity in the coming 12 months continued to reflect strong optimism. According to the survey report, “taken together with the Manufacturing PMI, the Services PMI data show that the Irish private sector appears to have made a good start to Q3.”
Author: Carl Kelly, Economist