Ireland skyline

Ireland PMI July 2019

Ireland: Services PMI slides in July as export sales contract at the sharpest rate in nine years amid Brexit uncertainty

Business activity in the Irish service sector lost traction again in July, reflected by a drop in the AIB service Purchasing Managers’ Index (PMI) to 55.0 from 56.9 in June. Nonetheless, the index remained above the critical 50-point threshold that separates improvement from deterioration in business conditions, pointing to strong growth in the services sector.

Easing demand from domestic and overseas markets drove a slowdown in new orders and output. In particular, export sales declined for the first time since November 2016 and at the swiftest pace since July 2009, with Brexit uncertainty especially weighing on UK business. As a result, backlogs of work, while still solid, rose at the slowest rate in three months. Nevertheless, firms continued to hire more workers, although the rate of job creation weakened markedly. On the price front, the cost burden climbed on higher wages and increased transport and fuel costs. That said, overall input cost inflation slid to a 16-month low, which prompted firms to raise output prices at a softer rate. Lastly, business sentiment fell to a three-month low in July on ongoing Brexit uncertainty, but remains positive on expectations of higher sales and new product developments.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest