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Overall private sector growth in Ireland slowed in October, while output and new orders declined for the first time in 2023, survey results from S&P Global showed on Friday.
The AIB services purchasing managers’ index slipped to 52.6 points in October from 54.5 in September, remaining well above the neutral 50-point mark and indicating expansion. October’s figures indicated the weakest growth since January.
AIB Chief Economist Oliver Mangan said: ‘Of particular concern in the Irish data was a marked slowing in new business in October, with an outright contraction in new export business, the first such decline since February 2021. This points to weakening demand conditions and a likely further loss of momentum in the sector in the next couple of months. Meanwhile, employment growth was at the slowest rate in 32 months, while backlogs of work rose at the weakest pace so far in 2023. Despite all this, firms remained optimistic about their expectations for business activity over the coming twelve months.’
Mangan added that inflationary pressured eased further but remained at high levels, with input prices continuously experiencing upward pressure from higher wages, fuel costs and utility bills.
The Ireland services PMI survey features a panel of around 400 service sector companies, with responses collected between October 12 and 26.
The composite PMI output index fell to 49.7 points in October from 52.1 in September, indicating contraction of the Irish private sector.
‘New work across the private sector economy fell for the first time in ten months in October, albeit only modestly. Outstanding business continued to rise at service providers, but fell sharply again at goods producers,’ S&P Global said.
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