Irish services sector slips back from post-Brexit high

Growth in Ireland’s services sector slipped slightly in February but remained close to January’s post-Brexit high and confidence about the future continued to grow, a survey showed on Friday.
Ireland is widely considered the EU economy most at risk from its key trading partner’s decision to quit the bloc, and growth slowed in both the services and manufacturing sectors after the surprise referendum result.
The Investec Services Purchasing Managers’ Index (PMI) slipped to 60.6 in February from the seven-month high of 61.0 in January, as growth in prices charged slowed, but new export business improved.
“While the rate of growth in activity across much of Ireland’s private sector has eased slightly from January, it remains well above the series average,” Investec Ireland chief economist Philip O’Sullivan said.
“Firms remain very optimistic on the outlook for the sector,” he said.
The services sector has not fallen below the 50 mark that separates growth from contraction since June 2012, when Ireland was halfway through a three-year international bailout. The economy has since recovered to be the best performing in the EU.
The new export business sub-index climbed to 58.4 from 56.1, the highest rate since July. The survey showed growth increasing slightly in employment levels but slowing in prices charged and in the amount of outstanding business.
A survey on Wednesday showed growth in Irish manufacturing slowed in February despite exports getting a boost from improved demand in Britain as sharply rising input costs dented profit margins.

Source: Arab News