There was a partial recovery in the country’s services sector in June, according to AIB in its latest purchasing managers index.
The business activity index rose to 39.7 from 23.4 in May, a level consistent with ongoing weak activity in the sector.
The index measures activity on a scale of 1 to 100 with the 50 break even point separating contraction from growth in a sector.
The June report, however, saw gains for all sub-components, suggesting the most severe phase of contraction has passed.
There was also a marked improvement in the 12 month outlook, which turned positive having been at subdued levels over the previous three months.
AIB chief economist Oliver Mangan said stronger PMI data was expected from July onwards as the economy reopens.
“The June reading for Ireland is below the flash Services PMIs for the same month in the euro zone, UK and US of circa 47. This reflects the much more cautious approach of the Irish authorities to lifting lockdown restrictions compared to elsewhere,” he said.
“The July Service PMI data should capture the later re-opening of the Irish economy, especially in the hospitality industry,” he added.
The Services PMI had peaked at a two-year high of 59.9 in February.
Article Source: Click Here