Irish service sector growth hits six-month high, PMI shows
DUBLIN, Oct 3 (Reuters) -Irish services activity grew in September at the strongest pace in six months as cost pressures eased and the volume of outstanding work rose at a solid pace, a survey showed on Thursday.
The AIB Global S&P Purchasing Managers' Index (PMI) rose to 55.7 in September from 53.8 in August. The index has been above the 50 mark that separates growth from contraction since March 2021.
AIB's Chief Economist David McNamara said the increase in activity was underpinned by a broad-based growth in outstanding work and new orders, alongside easing price pressures.
All four sub-sectors covered by the survey registered higher outstanding work for the third month in a row as the growth of new business led to a build-up in the level of incomplete work.
McNamara said respondents cited generally improving economic conditions for stronger client demand.
He said cost pressures eased in September, with the rate of inflation slowing to the weakest since February 2021.
"Nevertheless, wages remained the main sources of cost pressures in the sector," he said.
Employment continued to expand across all four sectors but at a slower rate than August with respondents pointing to the delayed replacement of leavers, he said.
Reporting by Graham Fahy; Editing by Toby Chopra
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