FX.co ★ Irish Services Growth Eases In December

The pace of expansion of Ireland's service sector softened in December as activity and new orders rose at slower rates, survey data from S&P Global showed Thursday.

The AIB Services Purchasing Managers' Index dropped to 53.2 in December from 54.2 in November. However, a score above 50 indicates expansion in the sector.

All four sub-sectors registered higher activity in December. Financial services logged the fastest growth, followed by technology, media, and telecoms.

New order growth slowed in December to the second-weakest in 2023. The rate of job creation was also the slowest over the current 34-month period of rising headcounts.

On the price front, input cost inflation rose to a 4-month high in December, linked to higher wages and increased expenses on utilities, transport, and insurance. As a result, selling charges increase at the quickest pace in three months.

Irish service providers were increasingly optimistic about business prospects for 2024, as they expected a fall in interest rates and hopes of an easing in geopolitical tensions.