September growth in services sector slows to weakest since start of year

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September growth in services sector slows to weakest since start of year
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Firms remain ‘very optimistic’ about business over the next 12 months despite slowing

The Purchasing Manager’s Index survey by AIB shows “solid growth” in Irish services sector last month, despite inflationary pressures. Photograph: Alan Betson

As in August, growth was led by the technology, media and telecoms sector. There were also expansions in financial services and business services, while transport, tourism and leisure saw a third successive monthly decline. Firms expanded their staffing again in September, although some businesses reported not replacing leavers due to cost pressures and shortages of suitably qualified candidates.

Input price inflation eased to a 29-month low in September, and charge inflation was the third weakest since mid-2021, but he said “stickiness in services inflation is evident”, as higher operating costs continue to be passed on in higher selling prices.

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