Services firms raise prices at the fastest rate since May 2024

The slower increase in new business led to a decrease in the level of outstanding work for the first time in four months in January

The financial service sub-sector remained the fastest growth area in this PMI with a reading of 58, while the business services sub-sector had a reading of 56.8.

Firms operating in the service sector increased their prices at the fastest rate since May 2024 last month, as cost pressures intensified and overall activity in the sector rose at its weakest rate in four months, the latest AIB Services Purchasing Managers Index (PMI) shows.

The PMI showed a slight drop during January, but overall recorded a growth during the month with a reading of 54.5 — down from 54.8 in December. A reading above 50 denotes growth in the sector.