Release of ‘pent-up demand’ drives sharp increase in services business activity

The latest PMI survey data from AIB signalled a marked pick-up in growth across the services economy in May as restrictions were eased

‘The May data signalled surging demand in the Irish economy,’ Oliver Mangan, chief economist at AIB, said. Picture:

Business activity in Ireland’s services sector increased at the fastest rate last month since March 2016, new data released by AIB showed.

The bank’s Purchasing Managers Index (PMI) rose from 57.7 in April to 62.1 in May, its highest level in five years, driven by the release of “pent-up demand” into the Irish economy following the lifting of some Covid-19 restrictions, including the reopening of non-essential retail and personal services.

“The May data signalled surging ...