Ireland services sector contracts for first time since 2021
The AIB S&P Global Services PMI fell to 49.7 in April, marking the first contraction for the sector since early 2021. Rising fuel and energy costs alongside geopolitical tensions weighed on new business orders, while input price inflation reached its highest level in over three years.
Ireland services sector activity fell to 49.7 in April, marking the first contraction for the industry in over five years. The AIB S&P Global Services PMI slipped from 50.7 in March, falling below the 50-mark that separates growth from contraction for the first time since February 2021. New business orders contracted and new export business fell, the survey showed.
Economic uncertainty, higher costs and geopolitical tensions were cited as key drivers of the downturn, AIB Chief Economist David McNamara said in a statement. The 49.7 reading outperformed the flash Eurozone PMI of 47.4. However, Irish services activity trailed levels seen in the United States and the United Kingdom.
