05.08.202111:16:00UTC+00Ireland Services Growth Strengthens In July

Ireland's service sector grew at the fastest pace since August 2000, survey data from IHS Markit showed on Monday.

The AIB Ireland services Purchasing Managers' Index rose to 66.6 in July from 63.1 in June.

The latest reading rose for the fifth straight month and was the third highest since the survey began in May 2000. Any reading above 50 indicates growth in the sector.

"It points to a rapid rebound in services activity, driven by the release of pent-up demand as lockdown restrictions are gradually lifted," Oliver Mangan, AIB chief economist, said.

The rate of new business growth accelerated to the fastest since January 2016 and new export orders grew at the strongest pace in the past three years.

Employment rose for the fifth month in a row in July and backlogs of work increased. Suppliers' delivery time lengthened.

Sentiment improved for the fifth time in six months, boosted by hopes of vaccine roll-out and lifting of restrictions and normalization of Brexit arrangements.

Input prices increased at the fastest pace since July 2008 and charge inflation rose to the highest in sixty-eight months in July.

The composite output index, covering manufacturing and services, rose to 65.0 in July from 63.4 in the previous month.