Irish Services Growth Slowest In 9 Months

(RTTNews) - Ireland's services sector expanded at the weakest pace in nine months in January amid slower rises in activity and new orders, data released by S&P Global showed on Thursday.

The AIB Ireland Services Purchasing Managers' Index fell to 53.4 in January from 57.1 in December. However, any reading above 50 indicates expansion.

Among four sub-sectors, transport, tourism, and leisure remained the fastest-growing sector, while the growth in financial services eased sharply, but faster than business services and technology, media, and telecoms.

New orders grew at the slowest rate in four months, which was more evident in transport, tourism & leisure, financial services, and technology, media, and telecoms. Foreign demand also rose at a weaker pace in January.

The survey revealed that outstanding work increased slightly, and employment was broadly unchanged, with job cuts recorded in financial services.

On the price front, both input and output price inflation climbed to an eight-month high in January. Price pressures were primarily driven by higher wages at both ends.

On a positive note, the 12-month outlook for business activity improved further to an 11-month high amid positive sales forecasts for an expected market recovery, pent-up demand, digital investment, tourism, new products, and growth in UK business.

The composite output index came in at 52.3 in January versus 52.1 in the previous month as output and new business in the Irish private sector both rose at moderate rates.