Ireland: Services PMI falls in June
The AIB Ireland Services Purchasing Managers’ Index (PMI) fell to 54.2 in June from 55.0 in May. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in services-sector business activity compared to the previous month.
The moderation was driven by the weakest increase in new business since January. This slowdown was attributed to less robust demand for services, despite continued growth in new customers and competitiveness. The financial sector outperformed, showing the steepest increase in new work, while the transport, tourism and leisure sector experienced a decline in activity, ending a four-month period of broad-based expansion across sectors.
In June, the service sector saw a notable alleviation in price pressures, with input price inflation slowing to its softest rate since February 2021, which was among the most significant decelerations in the survey’s history. Despite this, service providers continued to raise their charges, albeit at the second-slowest pace in over three years. Business sentiment remained positive but weakened to a 14-month low, reflecting concerns over slower growth in new business and high levels of charge inflation.