Ireland's services sector shrank and shed jobs at a slightly faster pace in September but rising exports boosted confidence that recovery was near, according to a new survey.
The NCB Purchasing Managers' Index fell to 45.5 from 46.7 in August, edging further away from the 50 mark that separates growth from contraction. But a pick-up in key sub-indices pointed to the prospect of recovery from late 2009, the survey's publishers said.
"It is encouraging to note that not only is confidence improving but so too is new export business which grew for the first time since December 2007," said Brian Devine, economist at NCB Stockbrokers.
The sub-index measuring confidence rose to its strongest since March 2008 while the new export orders component rose to 54.0 from 49.9 in August, ending a 20-month sequence of decline.
"Panellists reported that new business from overseas was mainly due to companies securing new clients and projects, particularly in Poland," said Markit, which compiles the data. "There were also signs that spending at UK customers had increased."
Another PMI survey last week showed Ireland's manufacturing sector shrank at its slowest pace in 19 months last month and new exports orders resumed growth, in another sign Ireland was closer to leaving one of the western world's deepest recessions.
Reuters