Irish Services Sector Growth Remains Solid in October

The AIB Ireland Services PMI Business Activity Index edged up to 54.3 in October 2026 from 54.1 in September, signaling a sixth consecutive month of expansion, although growth remained below its long-run average. Technology, Media & Telecom continued to lead sectoral growth, followed by Transport, Tourism & Leisure and Business Services, while Financial Services recorded the slowest expansion. New business continued to increase solidly, albeit at a softer pace, with international demand broadly stagnating. Employment also rose modestly, while outstanding business declined for the first time in five months. On the price front, input cost inflation accelerated to a five-month high, driven mainly by higher fuel, energy and wage costs, while service charges increased at their fastest pace since February 2023. Lastly, business sentiment weakened to a six-month low as inflationary pressures and economic uncertainty weighed on the 12-month outlook.

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.