The CSO has reported that the seasonally adjusted monthly
Irish services value index fell by 1.3% in May
2014 when compared with the previous month while, in the year to May 2014, there was an
increase of 3.3%. This contrasts with the purchasing managers' index (PMI)
survey 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
- - in effect reflecting hunches rather than data - - with activity back to
early 2007 levels.
The CSO index value is up 10.9% since 2010.
This was our PMI report for a month where activity
fell and was up only 3.3% in 12 months:
Irish services PMI eases from "white-hot" growth
rate; Official data show dip in 12-months to March
The CSO says that on a monthly basis, Administrative and Support Service Activities (+3.1%),
Accommodation and Food Service Activities (+0.5%) and Wholesale and Retail Trade
(+0.5%) increased when compared with April 2014. Transportation and
Storage (-4.5%), Professional, Scientific and Technical Activities (-4.0%),
Other Service Activities (-3.3%) and Information and Communication (-2.6%)
fell in the month to May 2014.
On an annual basis, Information and Communication (+12.4%), Accommodation and
Food Service Activities (+6.1%), Wholesale and Retail Trade (+3.1%) and
Administrative and Support Service Activities (+0.8%) increased when compared
with May 2013. Professional, Scientific and Technical Activities (-8.9%), Other
Service Activities (-3.9%) and Transportation and Storage (-1.5%) showed
decreases in the same period.
It's key to understand in
respect of the biggest services "exporters" that their real exports are only a
fraction of what they report - - Google, Microsoft and Facebook book big chunks
of their global revenues in Ireland (40%+, 25% and 50%) and the revenues are
rising at double-digit rates.
These are fake tax
avoidance related exports that reflect activities in many countries.
Irish Economy: Ireland's ephemeral services export boom
The PMI survey, which includes financial firms, has
a panel of 450 and no response rate is published.
The CSO sample size is approximately 2,100
enterprises and it excludes financial firms. The sample comprises a census of
all enterprises with an annual turnover value of more than €20m or enterprises
with more than 100 persons engaged. The remainder of the target population is
stratified using 2-digit Statistical Classification of Economic Activities in
the European Community, i.e. NACE Rev. 2 classifications. Each of these 2-digit
NACE sectors are further subdivided into strata based on turnover. A simple
random sample is then drawn from each stratum. Retail and Motor Trade figures
are taken from the separate Retail Sales Index sample of approximately 1,400
The response rates for the provisional results are typically 49% in terms of the
enterprises surveyed which represents 70% of the value of total turnover. The
corresponding figures for the final results are 59% and 88% respectively. These
response rates are based on averages for the 6 month period ending March 2012.