World Economy

Sharp Fall in Irish Service Sector

Sharp Fall in Irish Service Sector  Sharp Fall in Irish Service Sector

Growth in Ireland’s services sector slowed to an 11-month low in October following a sharp fall in expectations about future business, RTE reported. The Investec Services Purchasing Managers’ Index slipped to 57.5 from 58.7 in September, but remained well above the 50 mark that separates growth from contraction, as it has done since August 2012. Like the wider economy, services firms have so far proved resilient to the impact of Britain’s vote to leave the European Union. But the October survey saw a sharp fall in the business expectations index—which measures expected business levels in 12 months’ time—to 68.9 from 77.3. The survey’s authors said a number of respondents expressed concerns about customer sentiment. But while confidence fell, it remained relatively high with almost six times as many firms expecting growth compared to those who expect a moderation in activity in the coming year. Investec Ireland’s chief economist Philip O’Sullivan said that while there were some negative signs, the October survey still demonstrated a sharp pace of expansion in the services sector.

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