Service providers continue to pass on costs as inflation remains 'sticky'

Tech and telecoms service providers continued to see buoyant growth, while businesses in transport, tourism, and leisure contracted for a third consecutive month

The AIB purchasing managers index registered a 'solid' reading of 54.5 for the services sector, down somewhat on the levels of 55 and 56.7 recorded in August and July respectively.

Inflationary pressures continued to weigh on service providers last month, which they subsequently passed on to consumers as firms rebuild their margins post-pandemic, according to a survey.

The AIB purchasing managers index (PMI) for the service sector showed some businesses recorded a slower growth rate of new business, but a significant rise in outstanding work kept the sector in expansion territory.