Gradual slowdown in Irish services growth continues in August - PMI

Gradual slowdown in Irish services growth continues in August - PMI

Similar reports earlier this week showed the United Kingdom "s manufacturing sector is in its worst downturn since 2012, while the construction industry contracted for a fourth straight month".

Although not an official measure of the UK's Gross Domestic Product (GDP), the IHS Markit/CIPS surveys are a robust indicator of how confident businesses are about their current economic prospects.

"Although employment in the services sector continued to expand at a solid pace in August, it was still the slowest rate of job creation seen since May 2013", the economist added.

According to the survey, the reading of 50.6 in August was recorded above the 50.0 no-change benchmark for the fifth consecutive month, the lowest since June.

Commenting on the latest PMI for services, Pollyanna de Lima, Principal Economist at IHS Markit, said the weaker PMI readings for India's service sector match the trend noted in the manufacturing industry, bringing unwelcome news of a cooling economy halfway through the second quarter of fiscal year 2019/20.

Euro zone business growth was a touch faster than expected last month but remained in the doldrums as the bloc's dominant service industry only partially offset a slowdown in manufacturing, a survey showed on Wednesday.

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Forecasts of better demand conditions, marketing initiatives and accommodative public policies all boosted sentiment in August, the survey noted. The survey also pointed out that all the sectors it covered, except real estate and business services, showed sustained growth.

The info additionally revealed: 'New export work stalled, following a modest enlargement in July. News of slower growth in services sector follows data earlier this month showing eight infrastructure industries that account for two-fifths of the index of industrial production (IIP) slowed to a 2.1% expansion in July, down from a 7.3% growth in the year-ago period.

"An important development, however, is evident in a rebound in business sentiment".

Country's economy grew at an annual rate of 5.0 per cent last quarter, its slowest in more than six years and significantly lower than 5.7 per cent predicted in a Reuters poll.

That way, PMI for manufacturing as well as services in August did not show any turnaround in the economy.

Notwithstanding the decline, the composite PMI Output Index was in expansion territory for the 18th month in a row.

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