imageEconomic Indicators7 hours ago (Mar 03, 2020 08:11PM ET)

DUBLIN (Reuters) – Ireland’s services sector grew at its fastest pace in over two years in February on strong new orders, a survey showed on Wednesday, though the outlook for growth over the next 12 months softened slightly.

The AIB IHS Markit Purchasing Managers’ Index (PMI) for services rose to 59.9 from 56.9 in January, well above the 50 mark that separates growth from contraction.

“The robust expansion in service activity is being driven by strong growth in new business,” said AIB Chief Economist Oliver Mangan, adding that new exports orders, which had weakened a lot in 2019, had picked up considerable strength.

However, “buoyant business conditions would appear to be leading to increasing cost pressures in all service industries,” he said.

An easing of uncertainty around Brexit has helped solidify seven years of uninterrupted growth in the Irish services sector over the past few months.

But the authors said concern was beginning to emerge about Britain’s future trade settlement with the European Union and political deadlock following an national general election on Feb. 8.

Those concerns helped nudge the Business Expectations subindex, which measures the outlook for the coming 12-months, down a three-month low of 68.4 from 71.1 in January.

Irish services sector growth hits 25-month high: PMI survey

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.