Ireland: Services PMI rises in December
The AIB services sector Purchasing Managers’ Index (PMI) jumped in December, rising to 50.1 from November’s 45.4. As a result, the index moved slightly above the 50-theshold that separates expansion from contraction in business activity.
December’s reading largely reflected rising total activity, with the fastest expansion logged in the financial services sector. New business, however, fell slightly, although the outlook for the coming year improved as firms were optimistic over positive vaccine developments—with overall expectations the strongest since February. Regarding the labor market in the sector, employment grew for the first time since March in the final month of the year. On the price front, although input costs increased in the month amid higher utility bills and wage costs, the rate of inflation eased to a five-month low. Moreover, output charges also rose in December, yet only marginally.