Ireland's Services Sector: A Strong Comeback in November

Ireland's services sector showed impressive growth in November, reaching its highest point in over three years. This surge was mainly due to more business activity and new orders. The AIB Ireland Services Business Activity Index rose to 58. 5, up from 56. 7 in October. Any number over 50 on this index means the sector is growing. Financial services led the way, with technology, media, and telecoms also doing well. Even transport, tourism, and leisure saw a boost, their first since February. New business orders have been growing for four months straight, hitting a high not seen since April 2022. This growth was helped by more exports, with all four subsectors showing gains for the first time since January. Despite some job cuts in tech, media, and telecoms, overall employment in the sector grew at the fastest rate since March. However, the cost of inputs remains high, though it has eased since September. Service providers passed these higher costs on to customers by increasing their charges. Looking ahead, businesses are feeling more optimistic. Expectations for the next year are at their highest since February, with plans for more demand and investments.