3rd Jul 2026 01:35
(Alliance News) - Ireland's private sector activity accelerated in June, with growth picking up across services, S&P Global reported Friday.
The AIB Ireland composite purchasing managers' index rose to 54.4 points in June from 52.5 in May.
A reading above the 50-point 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 54.2 points in June from 50.8 in May.
David McNamara, AIB chief economist, commented: "New business continued to rebound strongly following a dip in activity earlier in the year, while new export business also expanded sharply on the month.
"The four sub-sectors covered in the survey registered mixed growth during June. Technology, media & telecoms, financial services and business services all expanded activity levels. However, transport, tourism & leisure saw a further modest fall in activity for a fourth successive month."
S&P Global said the growth in the services sector is the strongest since January, which is driven by recovering demand and higher client enquiries.
Irish services export demand strengthened in June, rising at the fastest pace in seven months.
Outstanding business rose for the first time in three months in June, while hiring remained subdued, with employment increasing at the softest pace in three months and job cuts deepening in transport, tourism and leisure.
"On the inflation front, input cost inflation eased from the 40-month peak reached in April and May but remained historically elevated. Rising supplier and freight costs, wage increases, fuel surcharges and energy costs were all factors cited by respondents in June," added McNamara.
Looking ahead, businesses were optimistic over the next 12 months, with confidence lifted by recovering demand, new opportunities and progress toward a potential peace agreement between the US and Iran.
On Wednesday, S&P Global reported that manufacturing PMI fell to 54.9 points in June from 55.9 in May.
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 PMI and manufacturing output index.
By Judy Amaca, Alliance News reporter Asia-Pacific
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