2023.02.0306:30:00UTC+00Ireland Service Sector Strengthens In January

Ireland's service sector strengthened in January as both activity and new business grew at faster rates, survey data from S&P Global showed Friday. The AIB services Purchasing Managers' Index rose to 54.1 in January from 52.7 in December, survey data from S&P Global showed Friday.

This was the fastest growth since last September. A reading above 50.0 indicates expansion.

New business expanded at a stronger pace in January, reflecting an improvement in underlying demand conditions and an increase in the number of new projects being undertaken. Demand from overseas also grew at the start of the year. Firms added to their workforce numbers in January. The rate of job creation was the second-weakest in the current 23-month positive sequence.

Service providers became more optimistic about their future in January and registered the strongest degree of confidence since last February.

The survey showed a sustained easing in inflationary pressures. Average cost burdens faced by service providers increased at the weakest pace in 19 months. However, firms raised their prices at the least pronounced pace in 16 months.

Amid stronger growth of services activity and a softer decline in manufacturing production, overall private sector output grew for the second consecutive month. The composite output index advanced to 52.0 in January from 50.5 in the previous month.