The country’s services sector posted its fastest growth in eight months in July on stronger new business and employment, and easing inflationary pressure, a survey showed today.
The AIB S&P Global Services Purchasing Managers’ Index climbed to 55.2 in July from 54.2 in June, remaining well above the 50 level that separates growth from contraction.
The rate of growth in the Irish services sector was well ahead of the flash euro zone, British and US PMIs.
Today’s survey showed that new export business expanded at the fastest pace since December 2024.
Higher activity was driven by increased demand, new sales and investment in business capacity, the survey’s authors said.
Today’s survey shows that Technology, Media & Telecoms (61.4) remained the fastest-growing sector in July, with the strongest expansion in nearly three years.
Business Services (55.4) overtook Financial Services (52.6) while Transport, Tourism & Leisure (49.4) registered the slowest decline in activity in the current five month sequence.
AIB said that inflationary pressure cooled further in July. The rate of input price inflation slowed for the third month in a row from April’s 40-month high, to a level broadly in line with the long-run survey trend.
It noted that Transport, Tourism & Leisure posted the steepest rise in input prices, and Financial Services the slowest – and the softest since March 2021.
David McNamara, AIB Chief Economist, said in terms of the outlook, business sentiment continued to recover in July, reaching a seven-month high.
“Business wins, new investments, and optimism about wider economic growth were cited as key drivers of improving sentiment,” he added.
