Ireland’s Services Sector Expands at the Fastest Pace in Six Months During December
Arslan Butt • 1 min read
Good news for Ireland’s economy as the services sector expanded at the fastest rate seen in six months during December over a significant improvement in business confidence. The AIB Ireland Services PMI soared to 55.9 in December from 53.7 in November, continuing above the 50-threshold indicating expansion.
A spurt in domestic orders was the main reason for the rise in the overall services PMI in December over strong increase in business activity in financial services, business services, and technology, media and telecoms firms. New work expanded at the fastest rate seen since six months and there was also a pick-up in new export business.
While services firms continued to add to their workforce, the pace of job creation slowed to the lowest in three months. However, the sub-index for the Future Activity Index, which is a measure of business confidence, surged to the highest in 17 months.
According to AIB’s chief economist Oliver Mangan, “Business activity grew very strongly in Financial Services (16-month high), Business Services (six-month high), and Technology/Media/Telecoms (seven-month high) during December. The fourth sector covered in the survey, Transport/Tourism/Leisure, saw strong growth in new orders. Overall then, this report indicates that the Irish services sector finished 2019 in very good shape, despite the challenges posed by Brexit uncertainty and weakening global growth.”