According to the AIB Purchasing Managers' Index (PMI) survey data for February of 2023, Ireland's service sector gained further growth momentum last month.
AIB stated that the Services Business Activity Index was up last month to 58.2 from 54.1 in January.
Transport, Tourism And Leisure
According to AIB, by sector, there was a growth stabilisation registered at transport, tourism and leisure firms last month, and the transport, tourism and leisure registered sector registered a slight contraction in new business volumes last month.
AIB also stated that by sector, cost pressures were weakest the in transport, tourism and leisure sector.
Additionally, AIB stated that the transport, tourism and Leisure sector registered a stabilisation in activity levels last month, while new business in the sector contracted for the fourth consecutive month, firms continued to increase their headcounts, and at the fastest pace since May of 2022, contrasting movements
were registered in terms of prices, and the input price inflation rate eased from January while selling price inflation quickened on the month.
Statement By AIB Chief Economist
AIB chief economist Oliver Mangan stated, "The AIB Irish Services PMI posted a strong increase in February for the third month in a row. The Business Activity Index climbed to 58.2 from 54.1 in January, 52.7 in December and 50.8 in November. This is the highest reading since May and points to a robust rate of growth in services activity in February. It is also well above the flash February Services PMI readings for the Eurozone, UK and US of 53.0, 53.3 and 50.5, respectively.
"A further marked rise in new business volumes in Irish services firms was registered in February, including in new export business, reflecting improving demand conditions both at home and abroad. This resulted in another significant increase in backlogs of outstanding business. There was a further rise in employment, but at a modest pace, amid reports of difficulties in sourcing staff. Meanwhile, firms' confidence about the outlook for the next 12 months rose for the third consecutive month to its highest level in a year.
"A very strong expansion in activity and robust growth in new business was recorded in three of the four sectors covered in the survey - technology/media/telecoms, financial and business services. Meanwhile, after five months in decline, there was a stabilisation in activity levels in the transport/tourism/leisure sector, with good growth in new export business.
"Inflationary pressures remain strong in the services sector. Businesses continued to report upward pressure on wages, as well as transport and energy costs, though the rate of increase in input prices eased somewhat further to a 20-month low. Meanwhile, higher costs continue to be passed on to customers, with the rate of increase in selling prices re-accelerating in the month."
Read More: Service Sector Activity Increased In January, According To Latest AIB PMI Survey Data
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