Services activity grows more slowly in April [Video]

The services sector recorded its the slowest rate of growth since January last month, the latest AIB Ireland services PMI shows.

New business growth also eased since March, contributing to lower job creation.

The technology, media & telecoms sector was a key source of weakness while financial services remained strong, and inflationary pressures were still historically elevated despite easing input prices.

The headline business activity index fell from 56.6 in March and below the long-run series average (55.1) to 53.3 in April, extending the current expansionary sequence to three years and two months.

“The rate of growth in the sector also remained faster than both the flash US and Eurozone PMIs at 50.9 and 52.9, respectively, but it was behind the flash UK services PMI at 54.9 in April,” said David McNamara, chief economist at AIB.

All four sub-sectors registered higher activity in April led by financial services (58.0), with slower growth in business services (52.6), transport, tourism & …