The country’s services sector expanded at its fastest pace this year in March, driven by a sharp increase in new business and employment, according to a survey released today.
The AIB Ireland Services Business Activity Index rose to 55.3 in March from 53.2 in February, indicating strong growth, AIB reported.
A reading above 50 signals expansion, while below 50 indicates contraction.
The survey highlighted notable growth in the Technology, Media & Telecoms, Financial Services, and Business Services categories, while Transport, Tourism and Leisure marked its first contraction in eight months.
New business expanded at the fastest rate in three months, extending a growth streak that has lasted over four years. Despite this, international new business rose modestly, marking the second-slowest rate in a 17-month growth sequence.
“The expansion was driven by an increase in new and outstanding business, and a sharp acceleration in hiring,” said David McNamara, AIB’s chief economist.
Employment growth accelerated, with the fastest job creation rate in over a year, as service providers sought to meet rising demand.
Inflationary pressures intensified, with input prices increasing at the quickest pace in 12 months, driven by wages, insurance, fuel and utilities.
Despite robust new business growth, overall confidence in future activity eased to a 28-month low, with uncertainty over international trade due to US tariffs cited as a concern.
However, 43% of firms still expect growth, supported by factors such as new customers, tourism, and investment in AI and renewable energy projects
Article Source – Services sector posts robust growth in March, PMI shows – RTE
