Services sector growth slows in May but new export business improves

Reuters

Growth in the Irish services sector slowed slightly in May but new export business grew at its fastest rate since last summer and business expectations improved, a survey showed on Tuesday.

The AIB S&P Global Purchasing Managers' Index (PMI) slipped to 57.0 from 58.4 in April, remaining above the 50 mark separating growth from contraction as it has for over two years.

The survey's subindex for employment fell, as did those for both prices charged and input prices.

But the new export business improved slightly to hit its highest level since July last year and business expectations rose to their second highest level in 15 months.

"There was yet another steep increase in new business volumes in Irish services firms, including new export business, reflecting strong demand conditions, both at home and abroad," said AIB chief economist Oliver Mangan.

The data, he said, "points to a continuing robust rate of growth."