Irish services sector growth decline in February

Growth in Ireland’s services sector slowed slightly in February as new orders weakened, but remained close to its fastest pace in almost a decade, a survey showed on Thursday.

The Investec Purchasing Managers' Index (PMI) of activity in services, which covers businesses from banks to hotels, slowed to 62.1 in February from 64.0 in January. Last month's figure was the highest since June 2006, at the height of the economic boom.

The sector has recorded over 3 years of unbroken growth, denoted by a reading over 50, and last fell below the 60 mark in February 2014 when Ireland was emerging from the bailout.

The sub-index measuring new business slipped to a four-month low of 62.3 in February from 66.2 the previous month, while prices charged fell for the third month in a row.

Business expectations fell to their lowest level in 18 months but remained high, with 13 times as many businesses expecting to see growth in activity over the coming year as those anticipating a decrease.

A sister survey on Monday showed Irish manufacturing activity was the slowest in two years in February.

“Taken together with Tuesday’s manufacturing PMI release, these reports suggest a slight moderation in the pace of growth across much of Ireland’s private sector in February, which is not surprising given external developments,” Investec Ireland chief economist Philip O’Sullivan said.

Reuters