Services sector activity expands in August

Activity in Ireland’s services sector expanded in August, with the headline PMI ticking up slightly to 59.7 from July’s 59.5 outturn. However, new business continues to moderate.

According to the Investec Services PMI Ireland, after having slowed to the weakest in close to 2½ years in July, the rate of expansion in business activity at Irish service providers ticked up fractionally in August.

The expansion in the financial services sector was “substantial”, Investec said, and the fastest since December 2014. Transport and leisure also saw output increase sharply.

On the new business front, growth moderated, with this index now expanding at its weakest pace since February 2014, with exports particularly hit.

Some respondents reported lower new orders from the UK, in part due to the strength of the euro compared with sterling following the result of the UK’s referendum on EU membership.

Despite the slower growth in client demand, the business outstanding index continued to expand in August, with some firms attributing this increase to staff shortages.

With an eye on the future, companies continue to exhibit a positive outlook, the report shows.