Activity in the Irish services sector weakened for the first time in 18 months in April, with SARS replacing war as a growing concern for companies, a survey said today.
The NCB Purchasing Managers' Service Index, which offers a monthly snapshot of conditions in the retail and wholesale sectors, fell below the critical 50.0 mark for the first time since November 2001.
Commenting on the survey, Mr Eunan King, senior economist at NCB, said intensifying competition, spare capacity, and rising concerns over SARS (Severe Acute Respiratory Syndrome) led to the monthly decline.
The survey, which polls 600 firms on current conditions, found wages continuing to rise despite a weaker labour market and a fall in other input costs such as oil
The survey also suggests confidence in the services sector remains weak. When asked if were positive about the future, respondents expressed concern that SARS would depress any hopes of a recovery in the next 12 months.