Ireland’s Services Sector Contracts at Fastest Pace on Record - Forex News by FX Leaders
Ireland's Services Sector Contracts at Fastest Pace on Record

Ireland’s Services Sector Contracts at Fastest Pace on Record

Posted Friday, April 3, 2020 by
Arslan Butt • 1 min read

Ireland’s services sector activity contracted at the fastest pace ever recorded in the month of March, heightening the risk of an upcoming economic recession. The AIB IHS Markit services PMI tumbled to 32.5 during March from 59.9 in February, far below the 50-threshold indicating contraction.

This was the the first contraction seen in the sector since 2012. The most affected sectors of the industry include transport, tourism and leisure on account of the raging coronavirus pandemic globally.

New orders, both domestic and export, fell at a steep pace while backlog of orders also shrank substantially. Business expectations for the next 12 months fell to a 20-year low, indicating that the sector could remain in trouble for some time to come.

According to Oliver Mangan, chief economist at AIB, “Overall, the PMI data show that there was an abrupt and rapid contraction in activity in the services sector in March. PMI data also show that manufacturing contracted in the month. Thus, there is little doubt that recessionary conditions have gripped the Irish economy.”

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of