Strong services industry growth maintained

The strong recent growth in the services industry was maintained in May, with the leading barometer of the sector detailing a 22nd consecutive month of progress.

The latest edition of the services purchasing managers’ index (PMI) from Investec Ireland shows a reading of 61.7 points, only marginally down on the seven-year high reading of 61.9 points recorded in April.

The latest headline reading suggests, according to Investec chief economist Philip O’Sullivan, the services sector is expanding at a blistering pace. “While most components point to a moderation in the rate of expansion, we would not be particularly concerned given that the white-hot rate of growth recorded in the sector in April was unlikely to be maintained for long.