Ireland: Services PMI growth eases in December, but remains above the 50-treshold for over X years running
January 6, 2016
The Investec Services Purchasing Managers’ Index (PMI) eased from November’s 63.6 to 61.8 in December. Despite the drop, the index remains well above the 50-threshold that indicates expansion in the services sector where it has been for the past 41 months.
December’s reading mainly reflects an increase in business activity, new businesses and employment. Business activity and new work increased sharply in December as economic conditions and confidence among clients improved. December also reported a significant increase in new orders as client confidence remained high and showed client willingness to commit to new projects. This, as a result, contributed via higher workloads, job creation and increased staffing levels. Meanwhile, input prices went up in December as staffing costs increased.
According to the survey report, “The latest Investec Services PMI Ireland release shows that the strong growth of activity that we have been documenting over the past two-and-a-half years continued in December. The headline PMI came in at 61.8, signifying a further substantial increase in business activity, and while this was lower than November’s 63.6 outturn it is worth noting that the latter performance was the strongest since June 2006. […] Looking ahead, with the Expectations component continuing to stand well above the series average, Irish services firms remain bullish about their future prospects”.