New business growth in Irish services hit a nine-month high in December, Reuters PMI shows

DUBLIN (Reuters) – Activity in Ireland’s services sector expanded slightly more slowly in December, but new job growth hit its fastest pace since March and optimism for the next 12 months improved, a survey showed on Monday.

The AIB Global S&P Purchasing Managers’ Index (PMI) fell to 57.1 in December from 58.3 in November, but remained well above the 50 level but signals growth and above the long-term trend level of 55.1.

“December’s expansion was driven by a rapid increase in new business and solid gains in outstanding business and employment,” AIB chief economist David McNamara said in a statement.

The growth rate in the Irish service sector was faster than the growth rate in the Eurozone and the United States Kingdom (TADAWUL:) PMI, both at 51.4, but slower than the US flash PMI of 58.5.

All four sub-sectors recorded strong growth in Ireland, with the best results in transport, tourism and leisure.

Confidence in future business activities rose to the highest level in ten months, and almost half of the companies expect growth in the next year.