Services sector continues to grow

Activity in the Irish services sector expanded for the 14th month running in September, largely due to a growth in new business orders, according to the latest Investec Services Purchasing Managers' Index.

Investec economist Philip O’Sullivan said improving confidence within the wider economy had contributed to a rise in new business in September, with new work reportedly having been received from both new and existing clients.

“Business activity remained in expansionary mode for a 14th successive month, with respondents citing higher new business as a key driver of the latest rise,” he said.

UK 'a source of strength'
Mr O'Sullivan added: "While the rate of growth in new export business softened during September, it nonetheless remained in positive territory for a 26th month in a row, with a number of panellists identifying the UK as a particular source of strength in recent times."

A key positive within the survey results was the consumer sentiment component, which showed signs of improvement in economic conditions both at home and abroad and supported optimism among service providers that activity will increase over the coming year. Moreover, sentiment picked up to the highest since October 2007.

While the headline PMI reading moderated to 56.8 from the previous month’s 61.6, this was expected given August’s reading was the highest since early 2007, Mr O’Sullivan said.

Good summer weather and signs of an upswing in the economy saw the State’s services sector grow at its fastest rate in six years in August.

Irish services companies also increased their staffing levels during September, with respondents citing “greater workloads”.

Job creation
The rate of job creation was faster than recorded in August. Staffing levels have risen in each of the past 13 months.

The Investec Services PMI data is composed from a survey that covers all private-sector services in the Republic, excluding retail and wholesale.

The data was derived from replies to questionnaires sent to approximately 600 Irish private-sector service companies.