The services sector activity in Ireland experienced a slight improvement during the month of May but continued to remain in contraction on account of the lockdown driven by the coronavirus pandemic. The AIB IHS Markit Services PMI rose to 23.4 in May from 13.9 in April, but stayed well below the 50-threshold indicating deep contraction.

May’s reading was the second lowest on record as the services sector continues to suffer even after Ireland began easing some of the lockdown restrictions. However, unlike several other countries in the Eurozone, the pace of reopening is slower in Ireland, with the country planning to allow restaurants to restart operations only by late June while hotels have to wait until July and pubs till August.

According to Oliver Mangan, AIB chief economist, “We expect a rebound in activity from the current depressed levels will be seen over the summer months as lockdown restrictions are eased and the economy starts to open up again.”