Ireland’s services sector grew at the fastest rate in seven years in April and employers added jobs at a rate not seen in even longer, surveys showed on Tuesday, as confidence builds that the economy is poised for solid growth.
Employment is growing particularly strongly in Ireland, with consumer sentiment at post-crash highs and house prices rising.
The Investec Purchasing Managers' Index (PMI) of activity in the services sector, which covers businesses from banks to hotels and accounts for 70 per cent of economic output, rose to 61.9 in April from 60.7 in March, the highest reading since February 2007. Readings above 50 point to growth.
“Today’s report and last week’s manufacturing PMI release show strong momentum across much of the private sector in Ireland,” Investec Ireland chief economist Philip O’Sullivan said, referring to manufacturing growth that hit a three-year high last month.
“With an improving outlook both at home and across the country’s main trading partners, we expect that this momentum will be sustained over the remainder of this year at least.”
The subindex for employment among services firms rose to 60.0 from 58.5, its highest level since 2006. Ireland’s unemployment rate, which rose above 15 per cent two years ago, has fallen below the EU average to 11.7 per cent.
Speaking in Brussels on Monday, minister for finance Michael Noonan said Ireland was on course to meet and could possibly better its target to bring its budget deficit down to 4.8 per cent of gross domestic product (GDP) this year.
Reuters
