| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy


Finfacts changes from 2015

RSS FEED


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.

Welcome

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

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Jun 5, 2015 - 7:46 AM


Irish service sector PMI remains strong; Tax avoidance clouds data
By Michael Hennigan, Finfacts founder and editor
Jun 4, 2015 - 9:17 AM

Email this article
 Printer friendly page

The Irish service sector PMI (purchasing managers' index) survey data saw an improvement in growth momentum in May, with activity and new business rising at faster rates and companies taking on extra staff at the strongest pace so far this year. On the price front, higher staff costs and a weak euro led to rising input prices while a solid increase in charges was recorded. However, as the biggest companies in the sector such as Google divert revenues from its main markets to Ireland for tax purposes, the real level of activity while positive is more muted.

The CSO's monthly services index rose 1.3% in March after a dip of 4.5% in February and is up 8.3% in 12 months.

The services index fell 0.6% in April according to the CSO today.

Markit says that 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 — rose to 61.4 in May from 60.6 in April. "The reading pointed to the sharpest expansion in three months, with service providers reporting that improving economic conditions had helped them to secure greater levels of new business."

Panellists generally expect market conditions to improve further over the next 12 months, resulting in strong optimism regarding the prospects for additional growth of activity. Sentiment was fractionally higher than in April.

Irish service providers posted a substantial increase in new orders during May, with the rate of expansion picking up to the sharpest in three months. As with activity, general improvements in economic conditions were mentioned as the key driver of new business growth. New export orders also increased at a faster pace, with the UK and US reportedly the key sources of new business from abroad.

With new business rising sharply again, companies continued to see an increase in their outstanding work. Backlogs have now accumulated throughout the past two years, with the latest increase the fastest since last October.

Alongside increasing new business, work on new projects and predictions of further new order growth led companies to take on extra staff again in May.

"Moreover, the rate of job creation picked up to the strongest in 2015 so far."

Input price inflation picked up during the month amid reports of higher wage costs and the weakness of the euro against sterling and the US dollar. Output prices also increased in May, extending the current sequence of inflation to 14 months. That said, the latest rise was the weakest in three months. Higher input costs had reportedly been the main factor leading firms to raise their charges, while competitive pressures and promotional discounts resulted in lower output prices elsewhere.

Related Articles


© Copyright 2015 by Finfacts.ie

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