Services sector sees 'robust growth' during March
During March, the services sector PMI had a reading of 55.3 — an increase on the 53.2 recorded during February. Any figure above 50 denotes growth in the sector.
There was a “notable improvement” in the growth of the services economy during March with both new business and total activity increasing at the fastest rates in 2025 so far, the latest AIB Purchasing Managers Index (PMI) shows.
During March, the services sector PMI had a reading of 55.3 — an increase on the 53.2 recorded during February. The PMI is calculated based on questions to firms around the volume of their business activity compared to the month prior.
Any figure above 50 denotes growth in the sector.
David McNamara, chief economist with AIB, said the PMI shows “robust growth” in the sector with the expansion “driven by an increase in new and outstanding business, and a sharp acceleration in hiring”.
According to the PMI, new business increased at the fastest pace in three months while new export business rose more modestly.
Meanwhile, the growth in outstanding work reached a seven-month high, with robust activity across all sectors.
"Three of the four sub-sectors registered growth in March. Technology, media and telecoms (TMT) recorded the fastest growth, with business services and financial services also growing at a solid pace,” said Mr McNamara.
“However, transport, tourism, and leisure registered a slight contraction, following a period of rapid growth in recent months.”
Despite strong increases in new business, service providers were less optimistic on growth of total activity over the next year, according to the PMI.
Overall confidence eased to a 28-month low, and was below the long-run survey average.
A number of firms mentioned uncertainty over the course of international trade due to US tariffs. But a much greater share of companies still expected growth as opposed to a contraction at their business — 43% to 13%.
