Ireland: Services PMI falls in July
The AIB Ireland Services Purchasing Managers’ Index (PMI) fell to 53.6 in July from 54.2 in June. 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.
July’s decline was driven by a softer increase in total activity. That said, the rate of growth in new business accelerated, returning to the long-run trend. This led to a stronger buildup in the level of incomplete work at services providers—the most notable since last September—with all four subsectors registering increased outstanding work. Employment in the services sector also picked up pace in July, although it remained slower than the long-run survey average.
In terms of prices, input cost inflation accelerated in July, while the rate of charge inflation eased. Lastly, business sentiment improved—reaching the strongest level since February—driven by expectations of an economic recovery and new clients, as well as increases in exports and domestic tourism.