Ireland’s service activity growth sped up markedly in November, purchasing managers’ index readings published by S&P Global showed on Wednesday.
The AIB Ireland services business activity index jumped to 58.3 points in November from 53.8 in October, indicating a healthy improvement in demand conditions, with the volume of new work received by service providers growing at the fastest rate since March.
Growing further beyond the neutral 50-point mark, it indicates growth accelerated solidly in November.
Further, the latest reading indicates the fastest rate of growth in services activity since April 2023, S&P Global highlighted.
‘Demand conditions improved and employment rose at a faster pace, but jobs growth remained weaker than the long-run survey average as the 12-month outlook was slightly less optimistic,’ S&P Global said.
The AIB Ireland composite PMI output index, a combination of the services and manufacturing sectors, rose to 55.2 points in November from 52.6 in October. On Monday, S&P had said the manufacturing PMI fell to 49.9 points in November from 51.5 in October.
‘The services sector was the main driver of growth in November, with the sharpest expansion since April 2023. Manufacturing output rose comparatively modestly, albeit at the second-fastest pace in two-and-a-half years.’ S&P Global said.
John Fahey, AIB senior economist said: ‘On the inflation front, the input cost index was broadly unchanged from October‘s elevated level, meaning continued significant cost price pressures in the sector. Wages and fuel were cited as key drivers of higher costs. In contrast, the rate of increase in prices charged rose at its slowest pace since April 2021. In terms of the outlook, while service sector firms remained optimistic on growth prospects over the coming 12 months, the future activity index eased for the third time in four months and is now at its second-lowest level since early 2023.’
The services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies in Ireland. The responses were collected between November 12 and 26.
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