Growth in the country’s services sector slowed in April to its lowest level in over a year as international trade tensions weighed on business sentiment, a survey shows today.
The AIB Global S&P Purchasing Managers’ Index (PMI) fell to 52.8 in April from 55.3 in March, still above the 50 level that separates growth from contraction where it has continuously remained for just over four years.
The survey highlighted unease at the impact of US tariffs, which contributed to the weakest business expectations in four-and-a-half years. The Finance Department has said that the tarrifs could disproportionately hit the fast growing economy.
New business growth slowed markedly, recording the largest monthly fall since January 2021, while new orders from abroad rose at one of the slowest rates in the current 18-month growth sequence.
Today’s survey shows that demand rose only fractionally in Business Services and fell at the fastest rate in over two years in Transport, Tourism & Leisure.
Despite the slowdown, employment growth remained robust, with service providers continuing to expand their workforces at a solid pace.
The rate of job creation was the second-fastest in eight months following an even stronger March and driven by increased outstanding work, particularly in the Technology, Media & Telecoms sector.
Input price inflation eased to its weakest rate in five months, driven mainly by wages, while charges also increased at a softer pace.
The sector’s performance still outpaced the euro zone, UK, and US flash PMIs for April, which stood at 49.7, 48.9, and 51.4, respectively.
Article Source – Services sector growth slows in April amid trade concerns, PMI shows – RTE
