Sasko Lazarov/Photocall Ireland
Like a plant

The summer sun is helping the economy grow

Growth in the sector has now pushed past the two-year milestone.

IRELAND’S GOOD SPELL of summer weather has helped the service sector lock in a pattern of expansion which now stretches back two years.

The latest figures by Investec Ireland for the service sector purchasing manager’s index, which measures activity in the non-retail and wholesale sectors, showed another sharp rate of expansion in July.

Business confidence also improved to its highest level since February, with higher levels of employment also recorded for the 23rd month in a row.

New export business hit a three-month high, with sales to the UK, US and Australia acting as the main drivers.

Investec Ireland chief economist Philip O’Sullivan said that the latest release shows “that conditions remain very supportive for services firms”.

Firms are also optimistic about the next 12 months, with executives’ view of the future improving to its second highest level in 10 years last month.

Panellists expecting an increase in activity in the next year outnumbered their more pessimistic colleagues by ten to one.

O’Sullivan continued: “Today’s services PMI data show that the Irish private sector appears to have madea good start to Q3.”

With improving trends evident both domestically and across Ireland’s key trading partners, we are optimistic of further impressive PMI releases over the coming months at least.

Read: Manufacturing orders rising at fastest pace in three years>

Read: Factory gate prices fall by 3.1% in March>

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