6th Aug 2026 01:40
(Alliance News) - Ireland's service sector activity expanded in July as inflationary pressures cooled and hiring increased, S&P Global reported Thursday.
The AIB Ireland composite purchasing managers' index increased to 54.9 points in July from 54.4 points in June.
A reading above the 50.0-point neutral mark indicates an overall increase in month-on-month business activity, while a reading below signals a contraction.
The services PMI rose to 55.2 points in July from 54.2 points in the previous month.
"New business continued to grow strongly following a dip in activity earlier in the year, while new export business also expanded sharply on the month, at the fastest pace since end-2024."
"The four sub-sectors covered in the survey continued to register a mixed performance during July. technology, media & telecoms, financial services and business services all expanded activity levels. However, transport, tourism & leisure saw a further marginal fall in activity for a fifth successive month," commented David McNamara, AIB chief economist.
Expanding activity levels in the services sector was supported by rising employment, with the workforce growing at the fastest pace in six months.
Inflationary pressures also eased during the month as input price inflation slowed for the third month in a row, following a 40-month high in April.
Charge inflation moderated for the third successive month, however S&P Global said it remained above the long-run trend.
Looking ahead, service providers raised their growth expectations for the coming 12 months with sentiment at the strongest level seen in 2026 so far.
Survey respondents attributed this improving optimism to new business wins, investment, expectations about wider economic growth and the recruitment of sales staff.
On Tuesday, S&P Global said the Ireland manufacturing PMI rose to 55.1 points in July from 54.9 point in June.
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 Elijah Dale, Alliance News senior reporter Asia-Pacific
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