Ireland Services Growth Strongest Since October Last Year

Ireland’s service sector growth improved to the strongest level since October last year as markets continued to reopen, survey data from IHS Markit showed on Tuesday.

The AIB Ireland services Purchasing Managers’ Index rose to 63.4 in March from 61.8 in February. Any reading above 50.0 indicates expansion in the sector.

“The AIB Irish Services PMI showed very strong growth in the sector in March as the recovery in services activity continued to gain momentum following the lifting of COVID restrictions earlier in the year,” Oliver Mangan, AIB chief economist, said.

New business expanded sharply further in March, led by stronger activity growth. Outstanding business increased at the fastest rate since October 2000.

The overall sentiment remained positive in March, but was the least since the beginning of 2021.

Input price inflation accelerated to the highest level on record and charged prices increased in March.

Employment increased at the fastest rate in seven months in March.

The composite output index, covering manufacturing and services, rose to 61.0 in March from 59.1 in February. This was the fastest growth since October last year.