Ireland Service Sector Contraction Slows In February

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Ireland’s service sector activity contracted at a softer pace in February, survey data from IHS Markit showed on Wednesday.

The AIB Ireland services Purchasing Managers’ Index rose to 41.2 in February from 36.2 in January. Any score below 50 indicates contraction in the sector.

The volume of incoming new business declined sharply in February and new work fell for the second month in a row. New export business decreased for the twelfth straight month amid weak UK demand.

Incomplete workloads declined further in February, albeit at a softer rate. Financial services recorded a growth in outstanding business.

The number of workforces were reduced further in February and the rate of job shedding was only moderate.

On the price front, input cost increased for the eighth straight month in February, while output prices continued to decline.

The 12-month outlook increased sharply to the strongest level in over a year. Firms expect a revival once lockdown restrictions are lifted.

Private sector output, covering manufacturing and services, contracted for the second straight month in February. The composite output index rose to 42.7 in February from 40.3 in the previous month.

“The impact of the continuing lockdown was very evident in a further decline in new business in the month, as tight restrictions suppressed demand, both domestically and in the UK in particular,” Oliver Mangan, AIB chief economist, said.

The material has been provided by InstaForex Company – www.instaforex.com

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