Services sector records strong November growth
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The service sector saw strong growth during the month of November as demand conditions improved, with new business rising at the fastest rate in eight months, the latest AIB Purchasing Managers Index for the services sector shows.
For the month, the services sector had a PMI reading of 58.3 — well ahead of the 53.8 recorded in October. The PMI is derived from questions firms are asked about the volume of activity compared with the prior month, with any number above 50 indicating growth.
Senior economist at AIB John Fahey said this latest PMI register showed a “very robust performance by the sector”, which indicates the “fastest pace of expansion” recorded in the services sector since April 2023.
The expansion was underpinned by strong demand conditions, with new business rising at the fastest rate since March.
“Meanwhile, export orders improved for the fourth month in a row. The volume of outstanding work increased, albeit the rate of backlog build-up eased for a third consecutive month," Mr Fahey said.
The strong performance was seen across all four sub-sectors, with financial services being the top performer, followed by technology, media and telecoms.
In terms of inflation, the input cost index was “broadly unchanged” from October’s “elevated level”, meaning continued significant cost price pressures in the sector.
“Wages and fuel were cited as key drivers of higher costs. In contrast, the rate of increase in prices charged rose at its slowest pace since April 2021,” Mr Fahey said.