Euro service sector contracts in contrast to British trend

IRELAND’S service sector contracted in May in line with the rest of the eurozone but in sharp contrast to the country’s largest traded partner Britain.

The NCB Purchasing Manager’s Services Index for Ireland, like its manufacturing counterpart, indicated a slowdown, with the Business Activity Index falling to its lowest level in 18 months at 47.5 (figures over 50 indicate growth, below contraction).

Commenting on the survey NCB Stockbrokers senior economist Eunan King said: “The service sector contracted again in May as both domestic and foreign demand weakened.