Wages, and the cost of energy, food, fuel and travel all increased in September. Transport, tourism and leisure saw the strongest cost pressures at the end of the third quarter – and technology, media and telecoms the weakest.
Service providers raised charges at the fastest rate in four months. Business services posted the sharpest increase, while transport, tourism and leisure recorded the weakest, the index said.
However, the findings were not all negative last month, as the AIB PMI index found that incoming new business rose more quickly in September.
This improvement was reflected in a boost to employment during the month following a round of job cuts in August.
Irish service providers raised staffing at the fastest rate since April, with all four sectors registering job creation, led by financial services and transport, tourism and leisure, it said.
Encouragingly, all four sub-sectors registered jobs growth
Looking at the findings from the AIB PMI index for September, the increase in employment was due to new projects and busier schedules, AIB chief economist David McNamara said.
“Overall, employment rose in September, reversing the decline seen in August,” he added. “Encouragingly, all four sub-sectors registered jobs growth, led by a sharp increase in financial services. Higher headcounts were linked to busy workloads and new projects.”
Business activity also rose for the first time in four months, from 50.6 in August to 53.5 in September – on a scale where 50 represents no change.
This indicated a robust rate of expansion and the fastest since May.
Three of the four sectors registered a growth in activity in September. Technology, media and telecoms at 60.9 recorded the fastest expansion, and the strongest for two years, the index showed.
Moderate rates of growth were registered in business services, with 52.3, and financial services at 52.2, while transport, tourism and leisure recorded 46.8, a seventh successive monthly decline.
However, across the Irish services sector, the general mood was found to be positive when looking at future growth opportunities in the next year.
“Looking ahead, firms in the Irish services sector were increasingly optimistic on the prospects for expansion in activity levels over the coming 12 months. Confidence was linked to new products, customers and a pick-up in international demand,” Mr McNamara said.
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