services Archives - Kelly Rahill Accountants

Services sector growth sees strong bounce in November

The country’s service sector growth bounced back strongly last month from a seven-year low as business confidence rose to its highest level since June amid firmer demand from customers, a survey showed today. 

A slowdown in manufacturing activity had threatened to spread in October to the services sector, where a long expansion in new orders weakened to a near standstill. 

But new orders rebounded to a three-month high in November.

This sent the AIB IHS Markit Purchasing Managers’ Index (PMI) for services to 53.7 from 50.6, its lowest since July 2012 and close to the 50 mark that separates growth from contraction. 

The services sector covers areas as diverse as communication, financial and business services, IT and the tourism trade. 

AIB said that panelists reported an increase in orders from existing and new customers in Britain, the US and Latin America. 

As a result, the sub-index measuring business expectations rose to a five-month high of 66.4 from 63.3 in October. 

While factory activity shrank again last month after a brief reprieve in October, a survey released yesterday showed that consumer sentiment recovered sharply from a seven-year low over the same period as the risk of a damaging no-deal Brexit receded. 

“The strong rebound in November is a welcome relief. It suggests the fall (in October) was an aberration and that the Irish services sector is continuing to perform strongly,” AIB’s chief economist Oliver Mangan said. 

“The details make for encouraging reading. Activity expanded in all four of the broad service sectors covered in the survey,” he added.

Article Source: Click Here

Services sector sees slowest growth since May 2013 – PMI

Services sector sees slowest growth since May 2013 – PMI

The services sector grew at its slowest rate since May 2013 last month, a survey showed today, amid a softening of both foreign and domestic demand conditions.

The AIB IHS Markit Purchasing Managers’ Index (PMI) for services slipped to 53.1 in September from 54.6 in August.

While it still remains above the 50 mark that separates growth from contraction, this was the weakest rise in business activity since May 2013.

The services sector covers areas as diverse as communication, financial and business services, IT and the tourism trade.

The economy has largely weathered the disruption created by Britain’s 2016 vote to leave the European Union but increasing uncertainty around Brexit, due to happen on October 31, is starting to bite.

Total new orders increased at the weakest rate in 76 months, and export sales fell for the second time in the past three months.

AIB said that the sub-index for new business eased to 52.2 in September, a 76-month low that the survey’s authors said was due to Brexit uncertainty negatively affecting customer demand.

“The combination of weakening global activity and the growing risk of a no-deal Brexit, which has been weighing on manufacturing activity this year in Ireland, is now beginning to impact on the services sector according to the latest AIB PMI data,” the bank’s chief economist Oliver Mangan said.

“The September reading of 53.1 still represents a solid pace of growth in the services sector.

“However, recent PMI data point to a deceleration in the pace of activity in the Irish economy as the year has progressed, largely owing to external headwinds,” Oliver Mangan added.

Article Source: Click Here

Services sector makes up for weak manufacturing activity – PMI

Services sector makes up for weak manufacturing activity – PMI

The country’s services sector continued to grow sharply in June, according to a new survey.

The growth more than made up for weak manufacturing activity, which shrank for the first time in six years over the same time.

The AIB Services Purchasing Managers’ Index stood at 56.9 in June compared to 57 in May.

That is far above the 50 mark that separates growth from contraction, as it has been since 2012, when a rapid recovery in the economy began to take hold.

While the corresponding survey for manufacturers showed that activity fell marginally below 50 due to the slowdown in global trade and uncertainty over Brexit, output in the sectors taken together was unchanged at a solid 54.4.

The growth in services, which was driven by stronger demand from customers, was also well above the flash PMI readings recorded in the US and the euro zone as a whole, AIB’s chief economist Oliver Mangan noted.

“It suggests the Irish economy is continuing to expand at a good pace, driven by strong growth in the large services sector. Furthermore, firms in the sector remain very optimistic on the outlook for their businesses,” Mr Mangan said.

Article Source: Click Here

Services growth slows in April as Brexit hits sales – PMI

Services growth slows in April as Brexit hits sales – PMI

Growth in the country’s services sector slowed in April, adding to signs that the economy began the second quarter at a more moderate pace amid the global slowdown.

The AIB services purchasing managers’ index slipped to 54.7 from 55.3 in March.

While the reading was still comfortably above the 50 mark that has separated growth from contraction since 2012, it was just above the near six-year low the series fell to in January.

The weaker expansion was driven by a fall in new orders, the sub-index for which dropped to 54.1 from 55.7, the lowest reading in two and a half years.

The services sector covers areas as diverse as communication, financial and business services, IT and the tourism trade.

“Although the rate of expansion remained solid amid reports of improved customer demand conditions both domestically and abroad, some panellists indicated that Brexit had negatively impacted on sales,” AIB’s chief economist Oliver Mangan said.

“Softer new order growth resulted in a weaker increase of backlogs. Outstanding business rose modestly in April, with the rate of accumulation easing to its slowest in 69 months,” he added.

Ireland has brushed aside the initial uncertainty from the 2016 Brexit vote, posting the fastest economic growth in the bloc for five years in a row.

However a corresponding survey for manufacturers earlier this week showed that it was growing at the slowest rate since the aftermath of the Brexit vote, also due to a moderation in new orders.

“Overall, the AIB Services PMI reading of 54.7 for April suggests that the Irish economy is continuing to expand at a good pace, though not as strong as in recent years,” Mangan said.

Article Source: Click Here