Ireland services sector enjoys rapid October growth

The nation’s services sector grew significantly last month following the fastest rise in new business in the last six years.
 
According to the Investec Purchasing Managers’ Index (PMI) of Ireland’s services sector activity rose for a 15th month in a row to 60.1 in October, up from 56.8 in September.
 
That was significantly beyond the 50 mark which separates growth in activity from contraction and was the second-highest reading this year after August’s impressive figures.
 
Meanwhile the sub-index for new services business within the sector also rose to 60.1, climbing from 57.4 in September, in its quickest expansion since March 2007.
 
Philip O’Sullivan, chief economist of Investec Ireland, said: "Both the new business and new export components saw their rate of expansion accelerate during October, with the UK cited as a key source of new export orders during the month.
 
"For some months now we have been expressing confidence that growth will accelerate into 2014 on the back of a stabilising domestic economy and improving export markets, with today’s report providing more comfort to that view."
 
The services sector covers a whole host of businesses from the banking industry to the hotelier industry, accounting for 70 per cent of Ireland’s entire Gross Domestic Product (GDP).
 
Investec’s PMI covers all private sector services in Ireland, excluding retail and wholesale, and is based on questionnaires sent to around 450 Irish private sector service companies.

Last updated: 13th November 2013