Irish Services Growth Hits 9-Month High

The AIB Ireland Services PMI declined to 54.1 in September 2026 from August’s eight-month high of 55.4, marking the lowest reading since May. It marked an easing in services-sector growth for the first time since April and slipped below the long-run average. However, demand strengthened, supported by broad-based growth across sectors for the second month running, with technology, media & telecom posting the fastest expansion. New business growth accelerated to a 10-month high, reflecting new clients and greater marketing efforts, though foreign sales rose only marginally. Employment increased slightly, despite outstanding work continuing to rise. On the price front, input cost inflation accelerated to its highest level since May, due to higher fuel and energy costs, while selling prices rose at the fastest pace in five months. Lastly, business sentiment improved to its highest level since February 2025, linked to planned business investments, new contracts, and marketing efforts.

The AIB Ireland Services PMI inched up to 55.4 in August 2026 from July’s 55.2, marking the highest reading since November 2025. The acceleration in services activity was buoyed by a solid increase in new business, boosted by overseas demand, albeit at a more modest pace than in July. New business accelerated in August, almost matching June’s seven-month high. Financial services led the sector, followed by technology, media & telecoms. Employment was unchanged, following the fastest rate of job creation in six months in July. On the price front, input costs rose for the first time in four months, with input price inflation moving further above the long-run survey trend, but remaining the second-weakest in six months. Meanwhile, output cost inflation accelerated for the first time in four months. Looking ahead, business sentiment improved to its highest level since February 2025, amid optimism over new business, investment, marketing, planned expansions, and new projects.

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.