Services sector growth slows slightly before Brexit vote

Growth in Ireland's services sector activity slowed slightly in June, a survey showed on Tuesday, although most of the responses were given before the market turmoil that greeted Britain's vote to leave the European Union.

The Investec Purchasing Managers' Index (PMI) of activity in services fell to 61.2 in June, down slightly from 61.7 the previous month and from a 10-year high of 64.0 at the start of the year.

The index, which covers businesses from banks to hotels, has been above the 50 mark denoting growth for almost four years.

"The individual components of the services PMI suggest cautious positioning on the part of firms and their clients ahead of the (June 23rd Brexit) vote," said Philip O'Sullivan, chief economist at Investec Ireland.

A subindex on business expectations tumbled from 77.0 to 68.4, the lowest since August 2013, according to the survey, which was taken on June 13-27.

A separate survey on Friday showed that Irish manufacturing recovered to a three-month high last month, although it too was carried out before the referendum and the authors said they expected Brexit to hit the near-term prospects of manufacturers selling goods abroad.

Reuters