Irish Services Sector Contracts for 1st Time in 5 Years

2026-05-06 00:07 By Joshua Ferrer 1 min. read

The AIB Ireland Services PMI dropped to 49.7 in April 2026 from 50.7 in March, marking the first contraction in activity since February 2021, as overall business activity declined marginally.

New business was broadly unchanged, with firms citing economic uncertainty and higher costs linked to the Middle East war.

Transport, tourism & leisure and financial services recorded declines, while technology, media & telecoms expanded strongly and business services rose modestly.

New export orders fell for the first time since June 2025, and backlogs declined slightly amid softer demand.

Employment rebounded after March’s fall, with most sectors hiring.

Meanwhile, input cost inflation accelerated to its highest since December 2022, driven by fuel, freight, energy, and wage increases, pushing firms to lift charges at a two-year high pace.

Sentiment remained positive but subdued, near a multi-year low, as geopolitical risks, rising costs, and interest rate concerns weighed on the outlook.



News Stream
Irish Services Sector Contracts for 1st Time in 5 Years
The AIB Ireland Services PMI dropped to 49.7 in April 2026 from 50.7 in March, marking the first contraction in activity since February 2021, as overall business activity declined marginally. New business was broadly unchanged, with firms citing economic uncertainty and higher costs linked to the Middle East war. Transport, tourism & leisure and financial services recorded declines, while technology, media & telecoms expanded strongly and business services rose modestly. New export orders fell for the first time since June 2025, and backlogs declined slightly amid softer demand. Employment rebounded after March’s fall, with most sectors hiring. Meanwhile, input cost inflation accelerated to its highest since December 2022, driven by fuel, freight, energy, and wage increases, pushing firms to lift charges at a two-year high pace. Sentiment remained positive but subdued, near a multi-year low, as geopolitical risks, rising costs, and interest rate concerns weighed on the outlook.
2026-05-06
Irish Services PMI Falls to 7-Month Low
The AIB Ireland Services PMI declined to 50.7 in March 2026 from February’s 51.8, marking the softest expansion since last August, as new business growth moderated. New business fell in two sectors, financial services and transport, tourism & leisure, and rose only modestly in business services. Meanwhile, new export business across the service sector as a whole was broadly flat in March. Employment fell for only the third time in the past five years, albeit at a marginal rate. Jobs declined slightly in three sectors, with financial services posting a modest increase. On prices, input cost inflation accelerated to a three-year high, driven mainly by higher fuel, energy, wages, pension contributions, and raw material costs. Supply chain disruption due to the Middle East war also pressured prices. As a result, firms raised their selling prices. Finally, sentiment weakened to its lowest level since October 2020 due to the impact of the war in the Middle East on the global economy.
2026-04-07
Irish Services Sector Growth Eases to 6-Month Low
The AIB Ireland Services PMI fell to 51.8 in February 2026 from 54.5 in January, marking the softest expansion since August. Financial services (55.4) led the sector growth, followed by business services (51.2) and transport, tourism & leisure (50.2), while technology, media, and telecoms (49.9) contracted slightly. New business growth moderated to a six-month low, with new export orders rising modestly and transport, tourism, and leisure edging lower. Despite softer demand, outstanding work increased for the fourth time in five months, while employment continued to rise, extending nearly five years of sustained job creation. On prices, input costs remained elevated, close to a three-year high, driven by higher wages, pensions, energy, fuel and transport costs. However, output price inflation eased notably from January’s peak, suggesting some margin pressure. Looking ahead, business sentiment improved, driven by new projects and clients, though still below its long-run average.
2026-03-04