04.10.202310:20:00UTC+00Irish Services Growth Slowest In 8 Months

Ireland's service sector maintained sustained growth in September, though at the weakest pace in nine months, as new orders rose at a slower pace, survey data from S&P Global showed Wednesday.

The AIB Services Purchasing Managers' Index dropped slightly to 54.5 in September from 55.0 in August. However, a score above 50 indicates expansion in the sector.

Among sectors, the overall growth was primarily driven by the technology, media, and telecoms sectors. At the same time, modest rates of expansion were indicated in financial services and business services.

The rate of growth in new business was the weakest since December 2022 but broadly matched the long-run series average. Foreign demand continued to rise, albeit at a slower rate than total new work.

In September, service firms increased their staffing again due to the overall rise in workloads. But the rate of job creation was among the slowest recorded over the past two years.

On the price front, input price inflation eased to a 29-month low in September, while charge inflation was the third-weakest since mid-2021.

The composite output index came in at 52.1 in September, versus August's 4-month high of 52.6. This signalled a moderation in Ireland's private sector output as new work increased at the slowest rate in 2023 so far.