5th Nov 2025 01:22
(Alliance News) - Ireland's private sector expansion accelerated in October, with the services sector supported by faster rise in output, S&P Global reported Wednesday.
The AIB Ireland composite purchasing managers' index rose to 53.7 in October, up from 52.0 in September.
A reading above the 50.0 neutral mark indicates an overall increase in month-on-month business activity, while a reading below signals a contraction.
Specifically, the services PMI rose to 56.7 in October from 53.5 in September.
David McNamara, AIB chief economist, commented: "This marks the fastest pace of growth since December 2024, driven by strong gains in new business.
"New business grew at an accelerating pace in October, underpinned by a strong rise in new export business. Outstanding business also rose in October, reflecting a recent recovery in new client demand."
Three of the four sub-sectors expanded in October. Technology, media and telecoms led the gains, followed closely by business services. Financial services posted modest growth, while transport, tourism and leisure posted further marginal decline for an eighth straight month.
Input prices continued to accelerate despite a softer pace of inflation, with respondents citing wage pressure as the key driver.
Looking ahead, services firms remain optimistic about rising business activity over the coming year, though they remain cautious that demand growth may not be sustained.
"Confidence dropped to a 4-month low, but remained in positive territory, linked to expansion plans and hopes that new orders will continue to rise," said McNamara.
On Monday, S&P Global reported that manufacturing PMI fell to 50.9 in October, down from 51.8 in September.
S&P Global compiles the PMI figures each month using survey responses from a panel of 400 service sector companies and around 250 manufacturers. The composite figure is a weighted average of the services and manufacturing indices.
By Judy Amaca, Alliance News reporter Asia-Pacific
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