Growth in the services sector slowed to a four-month low – report Investec

  • Growth in the services sector slowed to a four-month low – report Investec
    Independent.t. E.
    Growth in the services sector slowed to a four-month low, according to the latest services PMI customers (PMI) from Investec specialist Bank.
    https://www.independent.ie/business/irish/growth-in-the-services-sector-slows-to-a-four-month-low-investec-report-37180906.html
    https://www.independent.ie/business/irish/article37180907.ece/4ffd0/AUTOCROP/h342/p8retail.jpg

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Growth in the services sector slowed to a four-month low, according to the latest services PMI customers (PMI) from Investec specialist Bank.

PMI 57.4 in July, compared to June reading of 59.5, it is still consistent with a sharp pace of expansion. Any reading over 50 represents growth.

The growth in this sector was a disc with high demand, new orders and new export orders components both pointing to a significant expansion of the portfolio.

From the point of view of business abroad, firms referred to in the UK, India, France and the Netherlands in particular bright spots last month, according to the chief of Investec Ireland economist Philip O’sullivan.

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The company responded to increased demand by adding to their numbers, the employment index recorded its 71st consecutive above 50 reading.

However, despite these additional resources, backlogs of work rose again, as they have in every month since may 2013.

During the month, costs rose sharply, with companies blaming higher drinks, fuel, insurance and the rent for this last increase. A number of firms also indicated that the wages were raised due to the higher cost of living and efforts to retain staff.

The company raised selling prices in response to these pressure costs, which helped the profitability index accelerated at the fastest pace seen in 2018 so far.

Looking forward, the trust between enterprises slowed to a four-month low, but almost half of the participants expected production growth in the coming year.

Taken with the manufacturing PMI published earlier this week, Mr. O’sullivan said that the releases suggest that while the pace of activity growth in the private sector of Ireland softened slightly from multi-month high recorded in June, remains significant.

“We expect the Irish economy to grow by 5pc from the point of view of GDP this year, keeping the country to the top of the EU-28 ‘growth charts’.”

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