Services sector growth accelerates as inflationary pressures recede [Video]

Business in the services sector accelerated in November as prices charged by services providers rose at the slowest rate for three-and-a-half years, according to the latest AIB Ireland services purchasing managers’ index (PMI).

Demand conditions improved and employment rose at a faster pace, further indicating receding inflationary pressures, but jobs growth remained weaker than the long-run survey average due to a slightly less optimistic 12-month outlook.

The seasonally adjusted AIB Ireland services business activity index rose sharply to 58.3 in November from 53.8 in October, the fastest rate of growth since April and the largest monthly increase in the index (4.5 points) since February 2022.

Readings above 50.0 indicate an overall increase compared to the previous month.

“The AIB Irish Services PMI for November shows a very robust performance in the sector. The PMI rose to 58.3 from 53.8 in October, indicating a sharp acceleration in the pace of growth,” said John Fahey, senior economist at AIB…