Wednesday, September 3, 2014

3/9/2014: Services PMI for Ireland: August 2014


Services PMI for Ireland are out today, so here is the update on combined PMIs. You can read my analysis of the Manufacturing PMIs here: http://trueeconomics.blogspot.ie/2014/09/192014-irish-manufacturing-pmi-august.html

Services sector in Ireland posted another month of high level growth in activity in August.

  • August PMI for Services sectors (Markit and Investec) rose to 62.4 from 61.3 in July and up on 61.6 in August 2013. 
  • This marks 6th consecutive month of readings above 60 (which signify rapid growth), and 25th consecutive month of readings above 50 (which signify growth).
  • 3mo average through May 2014 was 61.4 and 3mo average through August is at 62.1, showing continued trend support above 60-61 mark.

Chart below illustrates both series - Manufacturing and Services:


The above shows that both Manufacturing and Services sectors are now running at the levels well above their post-crisis period average.

Chart below shows the growth estimates consistent with averages:


The above shows some good news: current trend is above already robust long-term growth estimate.

The chart below combines both PMIs and shows that the two sectors together now fully supporting growth in the economy - which is a good news and a significant gain on 2013 and 2012.


So overall, strong news from the PMIs.

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