Ireland’s service sector expansion slowed down markedly in June as softer output, hiring activity and a decline in new export orders led to one of the weakest monthly readings in more than four years of unbroken growth, a survey showed on Thursday.
The AIB Global S&P Purchasing Managers’ Index (PMI) fell to 51.5 from 54.7 in May, the weakest growth rate since January 2024 and the third-lowest mark since the sector’s sharp rebound from COVID-19 lockdowns began in March 2021.
The sector also outperformed the average for the wider euro zone – a 50.0 flash reading – by a tighter margin than during much of that run.
The waning momentum contrasted with the Irish manufacturing PMI, which grew at the fastest pace in more than three years last month and at a sharper rate than services for just the second time during that period.
New service sector business growth also slowed, with international demand falling for the first time in 20 months, which some firms attributed to weaker markets in the U.S. and Europe and ongoing global trade tensions.
Employment growth continued but at a reduced pace and the level of outstanding business also decreased for the first time since the start of 2024.
There was some relief for customers with the prices charged by service firms rising at the slowest rate in more than four years while the service providers themselves remained optimistic about future growth, albeit sentiment remained close to April’s post-pandemic low.
(Reporting by Padraic Halpin)
