Ireland Services Growth Highest In 6 Months

(RTTNews) - Ireland's service sector activity expanded at the quickest pace in six months, thanks to easing inflationary pressures, survey results from S&P Global showed on Thursday.

The AIB Irish Services Purchasing Managers' Index rose to 55.7 in September from 53.8 in the previous month. A score above 50.0 indicates expansion.

All four subsectors logged higher activity in September, with technology, media, and telecoms growing the fastest, followed by business services and financial services.

Although the rate of increase was the slowest in three months, overall growth in new orders was solid in September. The pace of job creation was also eased, while sustained growth in new business at Irish service providers led to another buildup in the level of incomplete work.

On the price front, input price inflation eased to the lowest since February 2021, which was more evident in technology, media and telecoms, and business services. Nevertheless, wages remained the main source of overall cost pressures in the sector.

Looking ahead, overall confidence regarding activity over the next twelve months improved, linked to new products and services, stronger demand from the construction and property sectors, lower interest rates, marketing drives, and the release of pent-up demand in the economy.