Ireland’s service sector activity showed a considerable loss of momentum in November, as output and new orders increased at the slowest rate in the current sequence of expansion under inflationary pressures, survey data published by S&P Global showed on Monday.
The AIB services Purchasing Managers’ Index declined to 50.8 in November from 53.2 in October. However, a reading above 50.0 indicates expansion.
The total activity, new work, and outstanding business all increased further, but the expansion rates were the slowest of each 21-month growth sequence.
On the price front, input price inflation picked up from October’s recent low, linked to higher costs for electricity, materials, wages, fuel and insurance. Despite easing to a three-month low, the rate of charge inflation also remained high.
On a positive note, service providers continued to expand their workforce numbers in November.
As a result of recession fears, the energy crisis, and rising living costs, Irish service providers’ confidence weakened in November.