Ireland: Services PMI strengthens further in August
September 3, 2014
The Investec Services Purchasing Managers’ Index (PMI) increased slightly from 61.3 in July to 62.4 in August. The result was just short of June’s multi-year high 62.6. Moreover, the index remains well above the 50-threshold that indicates expansion in the services sector, where it has been for two years.
August’s positive result was driven by ongoing expansion in the new orders category, supported by both strong domestic demand as well as by new export business. Growth in new business led to another monthly rise in backlogs of work. Businesses also indicated that they increased staffing levels 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, although sentiment was the weakest since last December. According to the survey report, “it is clear that there is strong momentum behind the bulk of Ireland’s private sector at this time.”
Author: Carl Kelly, Economist