Ireland: Services PMI surges to 26-month high in February
Business activity in the Irish service sector stormed to the strongest level of growth in over two years, as evidenced by the AIB service sector Purchasing Managers’ Index (PMI) rising to 59.9 in February from 56.9 in the prior month. Thus, the index moved well above the critical 50-threshold that separates expansion from contraction in business activity.
February’s reading reflected accelerations in business activity and new business growth, both of which quickened for a fourth consecutive month. The faster rate of total activity was also supported by stronger employment growth, with productivity levels also improving across the services sector.
On the price front, input cost inflation rose to the highest level in a year, while output price inflation quickened from January’s three-month low. Meanwhile, the 12-month outlook moderated somewhat, reflecting potential disruption to economic activity from Brexit- and coronavirus-related uncertainty.