FX.co ★ Ireland Services Growth Highest In 6 Months

Ireland's service sector saw its activity accelerate to its highest level in six months, spurred by a decrease in inflationary pressures, according to data released by S&P Global on Thursday.

The AIB Irish Services Purchasing Managers' Index climbed to 55.7 in September from 53.8 in August. A reading above the 50.0 threshold signals expansion.

All four subsectors experienced increased activity during September, with the strongest growth observed in technology, media, and telecommunications, followed by business services and financial services.

Despite the rate of growth being the least robust in three months, new orders continued to show solid improvement in September. Job creation slowed, though ongoing growth in new business led to another rise in the backlog of work for Irish service providers.

Regarding pricing, input cost inflation eased to its lowest point since February 2021, most notably in technology, media, and telecommunications, as well as in business services. However, wages persisted as the primary contributor to overall cost pressures within the sector.

Looking ahead, optimism about the upcoming year's activity strengthened, attributed to the introduction of new products and services, rising demand from the construction and property sectors, reduced interest rates, intensified marketing efforts, and the release of pent-up demand within the economy.