walking-holidaysIreland’s services sector has grown rapidly for 15 consecutive months from 56.8 to 60.1,
according to the Investec Purchasing Managers Index. 
This is the fastest rise in new business in 6.5 years, from early 2007.

Investec’s monthly Service Purchasing Managers Index hit 57.6 for July. This is the twelfth successive month of expansion and, compared to June’s headline figure of 54.9, is the fastest rate of growth since April 2007. Anything over 50 indicates growth.  You can download the report at the end of this article, just above my photo.

Companies are linking the latest expansion to the improved demand from both new and existing clients.

This was the result of a survey compiled by Markit that 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 and are split into four categories.

The heat wave this summer helped boost the tourism and leisure industry.  Transport showed an increase and financial services, technology and media & telecoms each registered weaker increases in activity than in the previous month.

The rate of growth in the services sector was the third-fastest since the series began in May 2000 and the sharpest since July of that year.

Employment increased at the fastest pace since December 2006. Job creation in the services sector has now been recorded for 11 consecutive months.

Investec Ireland chief economist Philip O’Sullivan said “One of the highlights of last month’s release was the profitability component, which returned to positive territory for the first time in 66 months during June. A further increase, albeit a very marginal one, was recorded in July as pressure on margins (input costs increased, output prices declined) was offset by higher volumes.”

Meanwhile, in October Britain’s services growth unexpectedly speeded up to the fastest pace in 16 years as the economy there showed signs of pulling away from the rest of Europe.

A gauge of activity rose from 60.3 in September to 62.5 - the highest since May 1997, Markit Economics said today in London. The report came as the European Commission forecast the British economy will grow by 2.2% next year, twice the pace of the euro area and more than Germany and France.

Britain’s manufacturing and construction also expanded last month, and Markit said its surveys point to accelerating economic growth.

 

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