Published by Global Banking & Finance Review®
Posted on June 5, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleIreland's services sector grew in May, driven by new business, despite global trade tensions affecting future expectations.
DUBLIN (Reuters) - Ireland's services sector expanded faster in May as a rebound in new business helped it buck a downturn for the euro zone as a whole, although concerns over global trade tensions weighed on future expectations, a survey showed on Thursday.
The AIB Global S&P Purchasing Managers' Index (PMI) rose to 54.7 in May from 52.8 in April, comfortably above the 50 level that separates growth from contraction and the 49.7 for the euro zone as a whole that was the bloc's first decline in six months.
Irish services firms have enjoyed more than four years of unbroken growth. Technology, media and telecoms led the way in May, followed by business and financial services. Transport, tourism and leisure declined for the third straight month.
Despite the growth in activity, job creation slowed, marking the weakest pace since January. A decline in employment among struggling transport, tourism and leisure firms and slower hiring growth in financial services offset gains elsewhere.
While cost pressures eased to an eight-month low, with input prices rising at a slower rate, service providers still increased charges at a stronger pace, driven by wage inflation.
Firms remained optimistic about growth prospects but their confidence levels improved only slightly from April's post-pandemic low, reflecting ongoing uncertainty linked to international trade relations.
Research co-authored by the Irish finance ministry found in March that Ireland's foreign multinational-focused economy faces a disproportionate hit from tariffs. The finance ministry last month downgraded its growth forecasts slightly for the domestic economy.
(Reporting by Reuters; Editing by Hugh Lawson)
The AIB Global S&P Purchasing Managers' Index (PMI) rose to 54.7 in May from 52.8 in April, indicating growth.
Technology, media, and telecoms led the way in May, followed by business and financial services.
Job creation slowed, marking the weakest pace since January, particularly due to declines in transport, tourism, and leisure firms.
While cost pressures eased to an eight-month low, service providers still increased charges at a stronger pace, driven by wage inflation.
Firms remain optimistic about growth prospects, but confidence levels have only slightly improved, reflecting ongoing uncertainty linked to international trade relations.
Explore more articles in the Finance category
