Irish services sector ends 2015 with solid growth

Ireland’s services sector expanded strongly in December to mark over three years of unbroken growth, a survey showed on Wednesday, as the economy outpaced its European peers in 2015 for a second successive year.

The Investec Purchasing Managers' Index of activity in services, which covers businesses from banks to hotels, slipped to 61.8 from November's nine-year high of 63.6. But it remains well above the 50 mark that denotes growth in activity.

It last fell below 60 in February 2014 when Ireland was emerging from a three-year international bailout.

The employment subindex, which reached a record high of 62.0 in November, dropped to an eight-month low of 58.6 although the report’s authors said increasing backlogs of work should support ongoing growth in employment in the sector throughout 2016.

“Within the survey we see evidence that improving conditions, both at home and abroad, are supporting growth in new business,” Investec Ireland chief economist Philip O’Sullivan said.

“With the expectations component continuing to stand well above the series average, Irish services firms remain bullish about their future prospects. Given the positive outlook for Ireland’s key trading partners and the domestic resurgence, we share this confidence.”

Reuters