Ireland’s services sector expanded at its quickest rate in 3½ years in November, driven by a rebound in financial services and renewed optimism among decision-makers. The AIB Ireland Services Business Activity Index rose to 58.5, up from 56.7 in October, signalling continued sectoral expansion.

New business accelerated to its highest level since April 2022, underpinned by a solid rise in export activity across all four subsectors. A recent recovery in client demand, combined with Ireland’s competitive position and sustained business investment, has been a key driver of growth.

Employment in the services sector also rose sharply, with job creation reaching its fastest pace since March 2018. However, growth was uneven: the technology, media and telecoms subsector recorded a decline in staffing for the third time in four months, partially offsetting gains elsewhere.

Input costs continue to rise, though inflationary pressures eased slightly from a six-month high in September. Transport, tourism and leisure reported the steepest cost increases, while service prices rose at the fastest pace since January, reflecting ongoing pricing power in the sector.

Ireland’s services growth outpaced other eurozone countries, where the sector index stood at 53.1, and the US at just over 55. The UK lagged, with near-stagnant growth at 50.5. The composite PMI output index for Ireland, covering both manufacturing and services, rose for the third consecutive month to 55.8, reflecting broad-based economic expansion largely driven by services.

The data highlights Ireland’s strong service sector performance amid rising demand, robust exports and selective job creation.

Explore how Ireland’s services sector is driving economic momentum and shaping labour market trends.