|
Ireland’s private sector expansion picked up pace in September, with the services sector supported by new business and employment, S&P Global reported Friday. The AIB Ireland composite purchasing managers’ index rose to 52.0 in September, up from 51.3 in August. A reading above the 50.0 neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction. Specifically, the services PMI rose to 53.5 in September from 50.6 in August. David McNamara, AIB chief economist, commented: ‘This marks the fastest pace of growth in four months, driven by gains in new business activity and employment. ‘New business grew at an accelerating pace in September, underpinned by the sharpest rise in new export business since January. However, outstanding business declined again in September, reflecting the weakness in demand evident in recent surveys.’ Three of the four services sub-sectors expanded in September, with technology, media, and telecoms recording the fastest rate of expansion. Moderate growth was seen for business services as well as financial services. Meanwhile, the transport, tourism and leisure sub-sector posted its seventh monthly decline in a row. Input cost inflation accelerated and hit a six-month high in September, with respondents highlighting wages, energy, freight, food, fuel, and travel as the key culprits. This contributed to service providers increasing their prices at the fastest rate seen in four months. On a more positive note, firms in the services sector maintain an optimistic outlook for the year ahead. ‘Anecdotal evidence mentioned investment in new products, new customers and a pick-up in international demand,’ S&P Global said. On Wednesday, S&P Global reported that the manufacturing PMI rose to 51.8 in September, up slightly from 51.6 in August. S&P Global compiles the PMI figures each month using survey responses from a panel of 400 service sector companies and around 250 manufacturers. The composite figure is a weighted average of the services and manufacturing indices. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
