Follow Ireland immigration and Ireland economic trends: Ireland's service sector expanded significantly in October, with new business growth reaching its highest level in six and a half years. Based on current conditions, the Ireland economy is gradually gaining momentum.
Specific data shows that the Investec Purchasing Managers' Index (PMI), which measures the performance of Ireland's service sector, rose from 56.8 in September to 60.1, marking 15 consecutive months of growth. It is understood that an index reading above 50 indicates growth in the service sector, while a reading below 50 indicates contraction.
The data also shows that in October, the new business index for the service sector rose from 57.4 in September to 60.1, marking the fastest growth rate since March 2007.
Philip O'Sullivan, Chief Economist at Investec Ireland, stated: “New business and new export activities also accelerated in October.” Philip O'Sullivan added: “We are confident that this trend is expected to accelerate in 2014, thanks to the stabilization of the domestic economy and the recovery of export markets. Today's data report gives us further confidence.”
Ireland needs to succeed in implementing its budget austerity policies. According to the plan, the country is scheduled to exit the EU/IMF bailout program this December, but Ireland has only just emerged from economic recession, and economic growth remains very sluggish.
Data indicates that the service sector accounts for 70% of Ireland's gross domestic product.
This survey was conducted by the market research firm Markit and covers almost all private sectors in Ireland, excluding retail and wholesale. A total of 450 companies participated in the survey.