3rd Jul 2025 03:47
(Alliance News) - Business activity growth in Ireland decelerated in June, driven by the services sector, S&P Global reported on Thursday.
The AIB Ireland composite purchasing managers' index fell to 52.8 in June, down from a six-month high of 54.9 in May.
A reading above the 50.0 neutral mark indicates an overall increase in business activity from the previous month, while a reading below signals a contraction.
The services PMI fell to 51.5 in June, down from 54.7 in May, and on Tuesday, the manufacturing PMI was reported to have risen to 53.7 in June, up from 52.6 in the prior month.
David McNamara, AIB chief economist, said: "This marks the slowest pace of [services] growth since January 2024, caused by softer output, new business and hiring activity. Overall, the rate of growth in the Irish services sector outperformed the Eurozone and UK flash PMIs at 50.0 and 51.3, respectively; but lagged the US services PMI at 53.1 in June."
"On the inflation front, input cost pressures eased further to the slowest rate since September 2024, and the prices charged index also decelerated to the lowest level in over four years. Meanwhile, firms in the Irish services sector remained optimistic on the prospects for expansion in activity levels in the coming 12 months. However, sentiment remained close to the post-pandemic low reached in April due to ongoing geopolitical uncertainty."
S&P Global compiles the PMI figures each month using survey responses from a panel of around 250 manufacturers and 400 service sector companies. The composite figure is a weighted average of the services and manufacturing indices.
By Elijah Dale, Alliance News reporter
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