Ireland’s service sector growth remained robust in October, thought the rate expansion was the weakest since February 2014, survey figures from Markit Economics showed Wednesday.
The seasonally adjusted Investec services purchasing managers’ index, or PMI, fell to 60.1 in October from 62.4 in the previous month. However, any reading reading above 50 suggests expansion in the sector.
Although this signalled the weakest expansion in activity since February 2014, the rate of growth remained elevated as higher new business continued to lead to rising output.
The rate of growth in new orders slowed again in October to the weakest level in seven months. But, the rate of expansion was solid on improving economic conditions. New export orders also increased sharply during the month.
Employment level in the service sector climbed for the thirty-eighth successive month in October, with the rate of job creation picked up to a ten-month high. Moreover, the latest rise in employment was among the strongest in the survey’s history
On the price front, input prices rose sharply in October, driven by higher costs for staff and insurance. The rate of charge inflation eased slightly over the month, but remained solid.
“Looking ahead, with the Business Activity: Expected Levels in 12 Months’ Time index remaining in strongly positive territory in October and nearly 12 times as many panellists forecasting an increase in activity over the coming year relative to those predicting a decrease, it is clear that most services firms are bullish on the outlook, ” Philip O’Sullivan, Chief Economist at Investec Ireland said.
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