Irish services activity grew at its fastest pace in eight months in March as the sector’s three-year expansion continued, it was reported today.
Faster streams of new work have contributed to the expanding sector.
The AIB S&P Purchasing Managers’ Index (PMI) rose to 56.5 in March from 54.4 in February.
The PMI had slowed to a near standstill in January but has continued to accelerate in the past eight months.
Growth is indicated by the index remaining above 50. The PMI has remained above this benchmark since March 2021 and was comfortably so throughout 2023 at an average rate of 55.5.
Although, the manufacturing sector slipped below the 50 mark to 49.6 in March after rising to 52.2 in February.
Authors of the manufacturing PMI cited subdued demand from UK clients and challenging global economic conditions as the reason for the fall.
March’s expansion in the services sector was driven by an increase in new orders at home and abroad.
New export business also reached a ten-month high on increased demand from the United Kingdom and Germany.
All four sub-sectors recorded higher activities, with financial services posting the fastest growth for the fourth consecutive month.
The outlook for the next 12 months remains positive. However, activity eased to a six-month low and was below the long-run series trend.
Input and output prices also remained above their long-run averages, though they eased slightly on the month.
Along with new contraction in the manufacturing sector, Ireland’s composite PMI for private sector growth slipped to 53.2.
Growth in the domestic economy slowed to 0.5% last year, but the central bank last month forecast growth of 2.2% this year.
