Ireland: Services PMI strong in May despite moderation
June 5, 2014
The services Purchasing Managers’ Index (PMI) inched down from 61.9 in April to 61.7 points in May according to a release provided by Investec. The index has been above the 50-point threshold that indicates expansion in the manufacturing sector since August 2012.
Most components of the index moderated in May, although this was not surprising following the multi-year highs that were observed in April. The rate of expansion in business activity, new business and new exports cooled, but remained strong. The forward-looking component that measures expected levels of business activity in the coming 12 months was stable for the third consecutive month. According to the survey report, this news, “taken together with the decent Manufacturing PMI report earlier this week bodes well for the performance of the wider Irish economy during Q2 and beyond.”
Author: Carl Kelly, Economist