Irish Services Sector Records Fastest Growth of 2025 in October
Ireland’s services sector expanded at its fastest pace this year in October, rebounding strongly after near-stagnant growth just two months earlier, according to the latest AIB Ireland Services PMI survey.
A surge in new business activity lifted the AIB Ireland Services Business Activity Index to 56.7 in October, up from 53.5 in September and a 19-month low of 50.6 in August. Any reading above 50 signals growth.
The pace of expansion outstripped that of both the euro zone and the UK.
Among sectors, technology, media and telecommunications (TMT) led the gains, maintaining strong growth with a reading of 60.9. Business services and financial services also accelerated, with indices of 59.2 and 55.0 respectively. Meanwhile, transport, tourism and leisure contracted only marginally, posting a subindex of 49.8.
Despite the sharp rise in activity, employment growth slowed compared with September. The report noted that TMT firms saw the fastest drop in staffing levels since May 2020, even as output and orders increased.
Business confidence eased to a four-month low, as companies voiced concerns over the sustainability of demand growth. However, optimism remained supported by expansion plans and a continued rise in new orders.
On the price front, input costs continued to climb sharply — mainly due to wage pressures — though the rate of increase moderated slightly. Output price inflation, however, accelerated for the third consecutive month, reaching its highest level since May.
Broader inflation in the Irish economy has averaged 2.7% over the past two months, exceeding the euro zone average for the first time in almost two years. Ireland remains one of the strongest-performing economies in the bloc.