IRELAND’S SERVICES sector contracted at record pace in February as pessimistic businesses cut jobs to reduce costs. According to the NCB Purchasing Managers Index (PMI) survey of services firms – ranging from banks to transport companies – business activity hit a record low of 31.8 last month, down from 33.9 in January. This is far below the 50 mark that separates growth from contraction.
Service firms shed jobs at a pace only slightly below January’s record rate as a range of companies, including SR Technics to Royal Bank of Scotland, announced redundancies in recent weeks. More than 36 per cent of the 600 survey respondents said their staff numbers dropped last month, making February the 12th consecutive month that employment in the sector declined, according to Markit, which compiles the data.
The sharpest job losses were among transport and leisure firms, while financial services companies posted a series record fall in employee numbers, with February the seventh consecutive month of job cuts in this area.
The index also shows many services firms remain pessimistic about the future. The measure of business expectations for 12 months’ time hit its second-lowest level since the index started in May 2000, falling to 44.6.
More than a third of companies surveyed said they expected lower activity levels in one-year’s time with many firms citing uncertainty over business prospects. – (Additional reporting: Reuters)
