Irish services activity expanded in September as the economy grew at the strongest rate since March, according to fresh data which also show that costs for the sector declined.
The AIB services purchasing manager’s index (PMI) shows an increase in headline activity in September compared to the previous month, rising from 53.8 in August to 55.7.
Any measurement above 50 shows an increase in the demand for services in the economy.
The index showed accelerating business growth in the country and “the rate of growth in the Irish services sector was also faster than that US, UK, and euro zone flash PMIs at 55.4, 52.8, 50.5, respectively”, said AIB chief economist David McNamara.
New business activity continued to rise during the month, continuing the upward trend evident since March 2021. But the rate of growth for new businesses in September was the slowest in three months.
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Irish firms remain confident about their 12-month forecast following the activity growth in September, the survey found.
The sector also marked an increase in employment with tourism producing job growth for the first time in five months.
Technology, media and telecoms were the fastest-growing sectors, recording 58.6, followed by business services at 55.7.
Acceleration in economic growth came as costs for businesses declined, particularly in the technology and business services sector, according to the survey.
Mr McNamara said the survey showed a pickup in growth in the technology area “driven by an upturn in new business, particularly exports”. The survey also showed that the hiring rate had picked up in the technology sector in the last few months, he said.
“Future activity expectations for the coming 12 months remain at high levels in the [technology, media and telecoms] sector.”
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