Service growth remains robust, inflation pressures ease – PMI
Service sector growth remained robust in July amid a strengthening in business sentiment and a slight easing in still high input and output cost pressures, a survey showed today.
The AIB S&P Global Purchasing Managers’ Index (PMI) for services was almost unchanged at 56.7 compared to 56.8 in June.
The index has stayed above the 50 mark separating contraction from growth for over two years and has not fallen below 54 this year.
Like in other euro zone countries, booming Irish services have offset a marked downturn in manufacturing this year to keep the economy in expansion mode after being the fastest growing across the bloc last year.
Activity, new orders and employment all grew strongly again last month, improving sentiment amongst Irish service providers, although their degree of confidence continued to fall short of the series average.
After input costs and prices charged grew at a faster rate in June due to persistent wage pressures, both expanded at a slower pace last month and were at their lowest levels since early 2021 when inflation began to take off.