4th Mar 2026 03:40
(Alliance News) - Ireland's service sector expansion slowed in February, although firms continued to raise their staffing levels, S&P Global reported Wednesday.
The AIB Ireland composite purchasing managers' index fell to 52.5 points in February from 53.3 points in January.
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.
The services PMI declined to 51.8 points in February from 54.5 points in January, reaching a six-month low.
David McNamara, AIB chief economist, said: "New business rose at its slowest pace since August, with new export business expanding at a steady pace. However, the volume of outstanding work bounced back to growth in February following a contraction in January, signalling robust activity across the sector.
"Financial services registered the fastest growth once again, with more modest gains in business services, and close to stagnant growth in transport, tourism & leisure. However, technology, media & telecoms recorded a fractional contraction in activity in the month."
S&P Global said hiring across these sub-sectors was mixed during the month, although staffing levels grew overall in the entire sector.
Financial services stood out as the best performer again, offsetting weaker trends seen elsewhere, with transport, tourism and leisure reporting a slight fall in staffing.
Service providers also faced input price inflation similar to the levels seen in the previous month, however the rate at which they hiked their own prices slowed from a 20-month high in January, as firms made efforts to stay competitive.
"In terms of the outlook, business sentiment saw an uptick, with firms broadly optimistic for their prospects in in the coming 12 months, linked to new projects and business opportunities," AIB economist McNamara said.
On Monday, S&P Global said the manufacturing PMI rose to 53.1 points in February from 52.2 points in January.
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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