Growth in services sector eases further in July
Growth in the services sector eased again in July, according to the latest Purchasing Managers’ Index from AIB.
The index dropped to 50.9 from 51.5 in June, marking the slowest pace of growth since January 2024.
This was driven by softer output, new business and hiring activity.
Three sectors registered growth of activity in July. The Technology, Media & Telecoms sector recorded a much slower expansion, while Business Services and Financial Services posted only modest growth.
Transport, Tourism & Leisure registered a fifth successive monthly decline in activity, but at a slower rate.
Overall, the rate of growth in the Irish services sector underperformed the Eurozone, US, and UK flash PMIs at 51.2, 55.2, and 51.2, respectively.
On the inflation front, input price growth was in line with last month – the slowest input inflation rate since September 2024.
The prices charged index was also in line with the June reading – itself the lowest level in over four years.
Despite the weak current activity level, firms in the Irish services sector remained optimistic on the prospects for expansion in activity levels over the coming 12 months, with sentiment ticking up slightly on last month.
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