Ireland’s services sector expanded rapidly again in October, a survey showed on Wednesday, but a third successive easing in the rate of new business pushed the headline rate of growth to a near two-year low.

The Investec Purchasing Managers' Index of activity in services, which covers businesses from banks to hotels, slipped to 60.1 in October - its lowest level since February 2014 - having hit a near eight-year high of 62.4 in September.

The index remains well above the euro zone average of 54.2 recorded in recent flash data and has stayed above 60 for almost two years. It last fell below the 50 mark that separates growth from contraction in July 2012.

“All segments of the services sector recorded a moderation in the rate of growth in new orders. This likely reflects the deterioration in the global economic outlook,” Investec Ireland chief economist Philip O’Sullivan said, referring to the slip in the new orders sub index to 60.9 from 63.3 a month earlier.

“With that being said, panellists once more identified the US and UK as key sources of overseas demand and given the recent softening of the euro against both sterling and the US dollar we suspect that favourable FX moves will help to shield exporters from the worst effects of the slower international growth.”

Reuters