THE EXPANSION of Ireland’s services sector slowed in August, but companies remained confident about prospects and recorded rising orders from both home and abroad, a survey showed yesterday.
The NCB services Purchasing Managers Index fell to 52.9 from 55.7 in July, when the sector saw the fastest rate of expansion since late 2007, but still staying above the 50 barrier separating growth from contraction.
In the services sector the rate of job cuts accelerated in August, the PMI survey showed. “Despite this, confidence continues to filter back into the sector, with the reading rising again in August,” said Brian Devine, economist at NCB Stockbrokers.
The sub-index measuring business confidence rose to 68.6 from 68.4 in July. Companies also saw an increase in new business including from domestic clients.
Meanwhile, the pace of recovery in the euro zone’s service sector barely changed in August from July. The Markit Euro Zone Services Purchasing Managers Index showed order books growing and companies hiring staff at a marginally faster rate last month.
The main index for activity in the service sector, which accounts for roughly two-thirds of the euro zone economy, rose to 55.9 in August from 55.8 in July. Marking its 12th month above the 50 mark, recent surveys suggest the service sector’s expansion has reached a plateau. The headline figure has wavered between 55.5 and 56.2 over the last five months.
“The final PMI reading suggests that the service sector recovery held its ground in August, with growth of activity so far in the third quarter in line with that seen on average in the second quarter,” said Rob Dobson of survey compiler Markit. – (Reuters)
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