| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Jun 6, 2014 - 10:08 AM

Irish services PMI eases from "white-hot" growth rate; Official data show dip in 12-months to March
By Michael Hennigan, Finfacts founder and editor
Jun 5, 2014 - 6:07 AM

Email this article
 Printer friendly page

The Irish services PMI (purchasing managers' index) in May shows an easing in the "white-hot rate of growth recorded in the sector during April" but the Irish services sector is dominated by US firms such as Google and Microsoft which book large chunks of their global revenues in Ireland for tax purposes.

The CSO's monthly index with a sample of firms more than five times Markit's, showed a fall in services activity in the 12 months to March and flat performance in the month of March after a dip in February -- the April services index report will be published today by the CSO but it gets very little media attention.

"All in all, while most components in today's report point to a moderation in the rate of expansion, we would not be particularly concerned given that the white-hot rate of growth recorded in the sector during April (the fastest since February 2007) was unlikely to be maintained for long," said Philip O'Sullivan, Investec chief economist. "We draw comfort from the forward-looking 'Expected Levels of Business Activity in 12 Months. Time' component, which has been stable at a robust rate of growth for the past three months. So, taken together with the decent Manufacturing PMI report earlier this week, today‟s release bodes well for the performance of the wider Irish economy during Q2 and beyond."

The seasonally adjusted Business Activity Index – which is based on a single question asking respondents to report on the actual change in business activity at their companies compared to one month ago - - posted 61.7 in May, down slightly from 61.9 in April but still signalling a sharp expansion in service sector activity. Panellists mainly linked higher activity to increased new orders. Service sector output has now risen in each of the past 22 months.

Sentiment regarding future activity also remained strong in May, with panellists forecasting improving economic conditions in Ireland and higher new work from abroad over the coming year.

Increased market activity led to another substantial monthly rise in new business, with new work up for the twenty-second consecutive month and at a pace well in advance of the series average. New export orders also continued to increase, although the rate of expansion slowed to the weakest since last September. Panellists indicated that the UK had been the key source of rising new export orders during the month.

Irish service providers recorded a twelfth successive monthly increase in outstanding business during May, largely due to rising new orders. That said, the pace of accumulation eased from that seen in April.  Higher new business also led to another rise in employment at Irish services companies, the twenty-first in as many months. Although easing to the slowest since November last year, the rate of job creation remained sharp.

The rate of input cost inflation accelerated for the second consecutive month, with panellists mainly attributing increased input prices to higher salary payments.

Higher input prices encouraged service providers to increase their output charges during the month, and a second successive month of inflation was recorded as a result. However, the rate of inflation remained only marginal amid pressure from customers for lower prices.

The panel includes around 450 private companies from the sector and no response rate is published.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March