Services sector activity up for second month

Business activity in the services sector increased for the second straight month in September, and at its fastest rate for 19 months.

On top of that, new business levels, export orders and employment levels within the sector all grew — with the latest edition of the monthly NCB Services PMI (purchasing managers’ index) jumping from 51.7 points to 53.9 points. Any reading over the 50 point mark illustrates a sector in growth mode.

“Similar to what we saw in the manufacturing PMI data, released earlier this week, there are indications that companies in the Irish services sector are encountering less resistance in passing on rising input prices as the output prices measure recorded its smallest rate of decline since August 2008,” noted Philip O’Sullivan, chief economist with NCB Stockbrokers.

Companies within the sector — which covers everything from transport and leisure to technology, telecoms and financial services — said they expected activity to increase further over the coming 12 months, with almost half of surveyed firms expressing optimism towards the short-term business outlook.

Those surveyed added that they anticipate seeing new product launches and business expansions supporting business activity increases over the coming year.