Service sector activity rises at strongest rate in 6 months
Activity in the service sector increased at the strongest rate in six months in September as cost pressures eased, new data shows.
The latest AIB Global S&P Purchasing Managers’ Index (PMI) shows that growth of both new business and employment moderated.
But outstanding work increased, and the 12 month outlook rebounded since August.
The index rose to 55.7 in September, from 53.8 in August.
Readings above 50 indicate overall growth in activity.
Activity rose in all four sector, led by Technology, Media and Telecoms.
Transport, Tourism & Leisure registered the weakest expansion in activity, as has been the case this year on average.
Today’s data shows that input price inflation moderated to a 43 month low, and was below the long-run survey average.
However, prices charged by service providers continued to rise strongly.
Service providers continued to expand workforces in September.
But he pace of job creation eased from August, and was slightly weaker than the long-run survey average.
Transport, Tourism & Leisure registered an increase in staffing for the first time in five months, but jobs growth slowed in the three other sectors.
Although growth of new and outstanding business eased in September, overall confidence regarding activity growth over the next 12 months improved.
Sentiment was the second- highest in seven months and above the long-run survey trend.
Companies linked confidence 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.
Article Source – Service sector activity rises at strongest rate in 6 months – RTE
