DUBLIN (Reuters) -Ireland's service sector posted its weakest growth in 19 months in August as employment and outstanding business contracted while input costs increased, a survey showed on Wednesday.
Irish service sector growth falls to 19-month low in August, PMI shows
Overview of Ireland's Service Sector Performance
DUBLIN (Reuters) -Ireland's service sector posted its weakest growth in 19 months in August as employment and outstanding business contracted while input costs increased, a survey showed on Wednesday.
Current Growth Trends
The AIB Global S&P Purchasing Managers' Index (PMI) slipped to 50.6 in August from 50.9 in July but held above the 50 level that indicates growth.
Sector-Specific Insights
That was marginally weaker than the average for the services sector in the wider euro zone, which slipped to 50.7 in August from 51.0 in July, according to a preliminary reading. The Irish manufacturing PMI also slowed in August as demand weakened.
Future Outlook
Despite a modest rise in new business, driven by the Technology, Media & Telecoms subsector, overall services sector demand remained subdued, with Transport, Tourism & Leisure experiencing its sixth consecutive monthly decline.
Employment in the sector decreased for the first time since January, with the sharpest cuts in Transport, Tourism & Leisure, followed by Financial Services.
Input cost inflation reached a four-month high, driven by wages, insurance, and IT costs, while service providers increased charges at the fastest rate in three months.
"Despite weak current activity levels, firms in the Irish services sector remained optimistic on the prospects for expansion in activity levels over the coming 12 months," AIB Chief Economist David McNamara said in a statement, citing hopes for new products and technologies and for an economic recovery.
(Reporting by Conor Humphries; Editing by Hugh Lawson)
