Services sector growth belies further job losses

Despite the services sector of the economy returning to growth in February, job losses in the sector continued, according to the latest NCB services PMI.

NCB Stockbrokers chief economist Brian Devine said the NCB services PMI signalled that activity expanded in February (53.3 from 48.3).

“This is a welcome development given the weak house price and retail sales data in January. Both new business (53.5) and new export business (55.2) expanded on the month, but employment continues to decline. Ultimately employment growth will be required for there to be a meaningful recovery in the Irish economy, and to date this is still elusive across the economy and also within the services sector (47.9),” he said.