Ireland: Services PMI rises in March
April 5, 2016
The Investec Services Purchasing Managers’ Index (PMI) surged from February’s 62.1 to 62.8 in March. The index is now further above the 50-threshold that indicates expansion in the services sector.
March’s reading mainly reflects an increase in business activity, business sentiment and new orders. Business activity improved on the back of improving economic conditions. Business sentiment strengthened in March as respondent were optimistic about new business and improved economic conditions. New orders expanded in March, albeit at a slower pace and tallied the slowest expansion since October. Regarding price developments, input prices increased in response to higher staffing and insurance costs. As a result, service providers increased output prices.
According to the survey report, “despite the moderation in New Orders and (we suspect related) global uncertainty, Business Sentiment ticked higher in March, with 19 times as many panelists expecting a rise in activity over the next twelve months as opposed to those who anticipate a contraction.”