3rd Oct 2024 08:53
(Alliance News) - The service sector continued to carry the broader Irish economy last month, as the manufacturing sector shrank, purchasing managers' index survey results from S&P Global showed on Thursday.
The AIB Ireland services business activity index rose to 55.7 points in September from 53.8 in August, representing the second-fastest pace of expansion in 14 months after March's 56.6-point reading.
AIB Chief Economist David McNamara noted the Irish service sector is growing faster than in the rest of the eurozone and also faster than in both the US and UK.
"Overall, Irish firms reported strong growth in new business, and this was linked to both domestic and export demand," he said. "The volume of outstanding work also rose at a solid pace on the month."
What's more, input cost pressures for service providers in Ireland eased in September, McNamara noted, with the rate of inflation slowing to its weakest since February 2021.
However, the composite PMI output index fell to 52.1 points last month from 52.6 in August, showing overall private sector growth was held back by the factory sector.
Reported on Tuesday, the manufacturing PMI fell into contraction at 49.4 points in September from 50.4 in August.
By Tom Waite, Alliance News editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights reserved.