Ireland: Services PMI strong again in September
October 3, 2014
The Investec Services Purchasing Managers’ Index (PMI) inched up from 62.4 in August to 62.5 in September. 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.
September’s positive result was driven by ongoing expansion in the new orders category, which increased at the fastest pace since May 2006. Strong domestic demand continued as clients were encouraged to take on new projects amid the improving economic environment. Moreover, the increase in new exports business was just shy of the record set in January. Businesses also indicated that they increased staffing levels in order to deal with the greater amount of new work. 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, “the broad-based nature of the growth in activity and the very high level of optimism among service providers lead us to reaffirm our view that the sector will continue to grow strongly into next year.”
Author: Carl Kelly, Economist