(Alliance News) - Ireland's services industries picked up last month ahead of the government ending a third coronavirus lockdown, according to a survey of around 400 businesses published on Thursday.
The jump was the strongest since the pandemic started, going by April's purchasing managers' index, whose compilers said "total activity and new business both increased at the fastest rates since February 2020."
Published by Allied Irish Banks and IHS Markit, which produces monthly PMIs covering manufacturing and services in dozens of countries, the survey reported rising employment in media, telecoms and financial services, but said there was "broadly no change" in tourism or leisure, sectors unlikely to reopen until later this year.
The AIB Ireland services business activity index rose to 57.7 points in April from 54.6 in March. This was above the neutral market of 50 points and also above the measure's long-term trend level of 54.8.
"Although much of the services sector remains in lockdown, the data are encouraging," said AIB economist Oliver Mangan.
In April, the government slightly relaxed a lockdown in place since late last year, widening the 'non-essential' travel limit from five kilometres of a home and returning all classes to school.
A wider relaxation will see non-essential retail reopen from May 17, a week after in-person religious services resume and nationwide travel is allowed again, though services businesses such as pubs, restaurants and hotels will have to wait until June.
Some pubs have been forced to stay closed since March 2020, with Ireland's restrictions regularly listed as Europe's longest-lasting and most restrictive in a University of Oxford ranking.
Dublin was on Wednesday again criticised for forcing arrivals from five fellow EU member states to quarantine in expensive hotels, with French Ambassador Vincent Guerend slamming the requirement, which has not been emulated elsewhere in the bloc, as "unnecessarily harsh".
As a result of the services improvement, the composite output index rose to 58.1 points in April from 54.5 in March, signalling the fastest growth rate for the private sector in Ireland since 2018.
The composite index is a combination of the services and manufacturing sector readings. On Tuesday, AIB and IHS Markit had said the Ireland manufacturing PMI rose to 60.8 points in April from 57.1 in March.
source: dpa
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