What’s Fueling the Services Sector’s Fastest Growth in Eight Months—And Why It Could Change Everything for Your Business
Isn’t it something when the services sector suddenly decides to pick up pace like a sprinter off the blocks? Last month, Ireland’s services sector did just that, hitting its strongest growth spurt in eight months, according to the latest AIB Ireland services PMI. It’s a refreshing shake-up fueled by a hearty jump in new work, largely thanks to overseas demand knocking at the door. Job creation is no longer just a whisper—it’s picking up steam, and the outlook for the next year? Brighter than it’s been all of 2026. Oh, and that pesky input inflation? It’s eased back to the long-term average, giving businesses some much-needed breathing room. For those of us who have been watching these numbers dance, this jump to 55.2 from 54.2 in July isn’t just a blip—it signals the most robust expansion since last November. Curious how technology, media, and telecoms are leading this charge while other sectors like transport and tourism are just starting to crawl out of a slump? Well, there’s plenty to unpack here, and it all points to one thing: Ireland’s services sector isn’t just surviving; it’s quietly thriving. LEARN MORE
Growth in the services sector accelerated last month to its strongest rate in eight months, according to the latest AIB Ireland services PMI.
The acceleration was supported by a solid increase in new work, which was in turn boosted by overseas demand.
The rate of job creation also picked up, and the 12-month outlook was the strongest recorded in 2026 so far, while input inflation slowed, returning to the long-term average.
The seasonally adjusted AIB Ireland services business activity index increased to 55.2 in July from 54.2 in June, signalling the strongest rate of expansion since November.
The headline figure was slightly above the long-run average since 2000 of 55.0, with higher activity driven by increased demand, new sales wins and investment in business capacity.
“The AIB Irish Services PMI for July shows accelerating growth in the sector. Overall, the PMI rose to 55.2 from 54.2 in June,” said David McNamara, chief economist at AIB.
“Activity levels were boosted by rising new business and employment, alongside easing inflationary pressures.
“The rate of growth in the Irish services sector was well ahead of the flash Eurozone, UK and US PMIs at 51.6, 51.8, and 53.6, respectively.”
Technology, media & telecoms (61.4) remained the fastest-growing sub-sector while expanding at its quickest rate for nearly three years, while business services (55.4) and financial services (52.6) both expanded solidly.
Transport, tourism & leisure, however, registered the slowest decline in activity in the current five-month sequence (49.4).
New business inflows rose solidly in July, albeit at a slightly softer rate than in June. As was the case for total activity, technology, media & telecoms posted the strongest rise in demand, followed by business services.
New work rose slightly in transport, tourism & leisure, ending a five-month downturn.
Meanwhile, the volume of outstanding business held at service providers rose at the fastest rate in 15 months and across all four sub-sectors, most notably technology, media & telecoms.
The workforce expanded at the fastest pace for six months and broadly in line with the long-run survey average. All four sub-sectors increased job creation for the first time in 10 months.
The rate of input price inflation slowed for the third successive month from April’s 40-month high back in line with the long-term trend.
“In terms of the outlook, business sentiment continued to recover in July, reaching a seven-month high,” said McNamara.
“Business wins, new investments, and optimism about wider economic growth were cited as key drivers of improving sentiment.”
(Pic: Getty Images)
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