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Irish services growth slows as Brexit drags on confidence - PMI

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By Reuters
Irish services growth slows as Brexit drags on confidence - PMI
Irish and European flags fly outside the European Commission headquarters in Brussels, Belgium, Februray 6, 2019. REUTERS/Yves Herman   -   Copyright  YVES HERMAN(Reuters)

By (Reuters)

DUBLIN, April 3 – Growth in Ireland’s services sector declined slightly in March as Brexit weighed on exports and pushed confidence among firms to its lowest level in over 6-1/2 years, a survey showed on Wednesday.

Ireland has mostly brushed aside Britain’s 2016 vote to leave the European Union, posting the fastest economic growth in Europe for five straight years. The economy continues to expand strongly but at a slower pace.

The AIB services Purchasing Managers’ Index (PMI) stood at 55.3 in March, down from 55.9 in February.

Expansion in new export business dropped at a sharper rate to 50.8, which was the weakest rate since November 2016, the only time the sub-index has dipped below the 50 mark that separates growth from contraction since 2011.

The data suggests that the Irish economy is continuing to expand at an impressive pace but “the readings for the opening three months of the year are all below the levels seen in 2018”, AIB Chief Economist Oliver Mangan said.

“This indicates that growth in the economy has slowed somewhat from the very robust rate seen in recent years,” he added.

(Reporting by Graham Fahy; Editing by Catherine Evans)