Irish Services Sector Growth Hits 8-Month High

The AIB Ireland Services PMI climbed to 55.2 in July 2026 from June's 54.2, marking the highest reading since November 2025. The acceleration in services activity was supported by a solid increase in new business, boosted by overseas demand, with the fastest expansion since December 2024. Technology, media & telecoms remained the fastest-growing sector, recording its strongest expansion in nearly three years. New business inflows rose solidly, albeit at a slightly softer pace than in June. Employment increased, with job creation picking up. On the price front, input cost inflation slowed for the third consecutive month from April's 40-month high to a level broadly in line with the long-run survey trend. As a result, output cost inflation also eased for the third consecutive month to a five-month low but remained above the long-run trend. Finally, business sentiment improved to an eight-month high, amid optimism over stronger economic growth.

The AIB Ireland Services PMI increased to 54.2 in June 2026 from 50.8 in May, marking the highest reading since January. The acceleration in services activity was supported by the strongest expansion in new business in seven months, driven by recovering demand. Technology, media & telecoms remained the fastest-growing sector, recording its strongest expansion since last November. Overseas demand improved, rising at the strongest pace in seven months. However, higher levels of outstanding business partly reflected a relatively modest increase in employment, which grew at the slowest pace in three months. On the price front, input costs rose due to higher fuel, salary, freight, and supplier costs. However, input cost inflation eased to a four-month low. Looking ahead, business sentiment improved to a four-month high, supported by optimism over recovering demand, new business opportunities, marketing initiatives, and growth in product lines.

The AIB Ireland Services PMI rose to 50.8 in May 2026 from 49.7 in April, signaling a marginal rise in activity, though it remained below its long-run trend of 55. It was the highest reading since February, supported by a renewed increase in new business. The rate of new business growth was the fastest in three months, with new export orders rising. Technology, media & telecoms posted the fastest expansion in activity, followed by business services and financial services. Employment increased at the fastest pace in four months as business activity expectations improved. On prices, input costs rose due to higher fuel costs, salary pressures, and supplier prices. However, inflation was little changed from April's 40-month high. Selling prices also rose as firms passed on higher costs to customers, though inflation eased from April's two-year high. Finally, business sentiment remained relatively subdued, reflecting geopolitical uncertainties and rising costs.