Business activity in Ireland’s services sector fell at its sharpest rate for more than six and a half years last month, the latest NCB Purchasing Managers Index published today shows.
The decline - the second largest in the survey’s 8-year history - was attributed to lower levels of new business as firms reported reduced property and construction-related activities.
This was the third month in a row that activity in the sector shrank.
Confidence in the sector - which includes all private sector service activities other than retail and wholesale – also fell to its lowest level since September 2001.
Service sector employment in April declined for the second month in a row but only at a marginal rate, resulting from lower new business volumes and continuing economic uncertainty.
NCB said there were reports that the “poor economic health of the construction sector was adversely affecting demand”.
“Firms also mentioned deteriorating global economic conditions and greater competition,” it added.
The survey also indicated that input cost inflation accelerated to its highest rate in 22 months on the back of rising salaries and increased energy and transport costs.
Business activity in the financial services sector fell sharply and there were reports of reduced activity in both stock and property markets, the NCB noted.
The data also signalled a sharp fall in new business among financial services’ firms.
“The substantial fall in new work was linked by panellists to worsening global economic conditions and declining confidence amongst clients,” NCB said.
