Activity in the Irish service sector decreased for the second consecutive month in June, though at a marginal rate, data from a survey by Markit Economics and HSBC Bank showed Wednesday.
The seasonally adjusted purchasing managers' index (PMI) for the service sector rose to 49.7 in June from 48.9 in May. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth. The latest reading marked the second consecutive contraction in activity.
New business received by Irish service providers increased marginally in June, recovering from May's decline, helped mainly by increased marketing activity. New business has risen in four of the past five months.
Service sector firms reduced their staffing levels during the month, though marginally, as part of company restructuring and cost reduction efforts. Input prices increased at strongest pace in three months. However, service providers lowered their output prices due to strong competitive pressures and to stimulate demand.
Looking ahead, service sector companies said they are optimistic that activity will improve in 12 months' time from current levels, as increased marketing activity would help boost demand.
by RTT Staff Writer
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