The country’s services sector returned to growth in May as activity and new business increased, a survey showed today.
The AIB S&P Global Services Purchasing Managers’ Index climbed to 50.8 in May from 49.7 in April, moving back above the 50 level that separates growth from contraction.
“New business bounced back to growth in May following a contraction in April, while new export business also expanded once more during the month,” AIB’s chief economist David McNamara said in a statement.
“However, the volume of outstanding work fell again in May, having declined in April, amid generally weak demand conditions,” he added.
Activity grew fastest in May in the technology, media and telecoms and business services sectors, while financial services saw a rebound in activity as new business expanded for the first time in three months.
A surge in input prices, weaker new business and slower hiring resulted in another sharp decline in activity for the transport, tourism and leisure sector.
Employment increased in all sectors except transport and tourism and leisure where employment fell for the fourth month in a row.
Cost pressures remained high, with input price inflation little changed from April’s 40-month record peak.
