Activity in Ireland’s services sector surged in November at its fastest pace since May 2022, according to the latest Purchasing Managers’ Index (PMI) from AIB. The report also highlighted the strongest increase in business growth since April 2022 and the highest rise in employment since March.
The seasonally adjusted AIB Ireland Services Business Activity Index rose to 58.5 in November, up from 56.7 in October. A reading above 50 signals overall expansion compared with the previous month. AIB noted that the upturn was broad-based, with significant growth in Transport, Tourism, and Leisure, alongside strong performances in Financial Services and Technology, Media, and Telecoms (TMT).
Financial Services posted the sharpest increase in activity with a reading of 60.9, closely followed by TMT at 60.3. Business Services expanded at a slower pace than in October but still showed marked growth at 57.7. Transport, Tourism, and Leisure recorded a reading of 53.3, marking its first expansion since February.
The report showed new business growth accelerated for the fourth consecutive month, reaching levels not seen since April 2022, led largely by Financial Services. New export orders also rose at a solid pace, consistent with trends observed in September and October.
Rising demand prompted companies to increase staffing levels, with job creation reaching its fastest rate since March. AIB noted that employment gains were driven by higher customer demand and proactive recruitment in anticipation of future expansion. Financial Services led jobs growth, while TMT reported a reduction in staffing for the third time in four months.
Cost pressures remained notable, although the rate of input price inflation eased to a three-month low. Businesses faced higher wages, rising service and energy costs, increased insurance rates, and pension contributions. In response, service providers raised their charges at the fastest rate since January, reflecting strong demand alongside rising costs.
AIB Chief Economist David McNamara said the November Services PMI indicates a sharp acceleration in sector growth. “The rate of growth in the Irish services sector continues to outperform the euro zone, UK, and US flash PMIs, which stand at 53.1, 50.5, and 55, respectively,” he said.
McNamara also highlighted rising confidence among service providers, noting that optimism regarding expansion over the next 12 months recovered from a four-month low in October to reach the highest level since February.
The report underscores a sustained recovery in Ireland’s services sector, driven by strong domestic demand, increased staffing, and resilient export orders, positioning the industry ahead of broader global growth trends.
