The Irish services sector grew at a slower pace in July as a result of contraction in new export orders. This was the first time in nearly three years that new export orders had shrunk, mainly driven by increasing concerns of a no-deal Brexit.

According to data released by Markit, the AIB services PMI fell to 55.0 in July from 56.9 in June. Fortunately for the Irish economy, this figure continues to stay above the 50-threshold, indicating expansion.

However, new export orders declined to 49.4 in July from 53.4 in June, going into contraction. The last time this figure had fallen below 50 was in November 2016, shortly after the Brexit referendum.

Although the manufacturing PMI slipped to 48.7 in July, the overall PMI remains supported by the strong performance of the Irish services sector.