Activity in Ireland’s services sector accelerated to hit a 14-month high in April as the country began a gradual loosening of COVID-19 restrictions, a survey showed on Thursday.
The government last week said it would press ahead with plans to reopen all retail stores, personal services and non-residential construction in May, with hotels, restaurants and bars allowed to serve outdoors from early June.
The AIB IHS Markit Purchasing Managers’ Index (PMI) jumped to 57.7 in April from 54.6 in March, the fifth time it has crossed the 50-mark separating expansion from contraction since the start of the COVID-19 pandemic. That is up from a 2021 low of 36.2 reported in January.
“Although much of the services sector remains in lockdown, the data are encouraging as all the main components of the survey showed significant improvements,” AIB Chief Economist Oliver Mangan said.
International demand helped lift exports of services to their joint-fastest growth rate since July 2018, with firms reporting increased business from British and mainland European markets.
The survey’s future activity index hit a three-year high on expectations the reopening of the economy will bring a strong rebound in business activity.
Photo: A pedestrian passes by a closed pub in Dublin City, Ireland. EPA-EFE/Aidan Crawley
