Irish services growth slows in April as Brexit hits sales: PMI

DUBLIN, May 3 (Reuters) – An investigation revealed Friday that growth in Ireland's services sector slowed in April, adding that the start of the second quarter was at a more moderate pace in the context of a global slowdown.

The AIB Purchasing Purchasing Managers Index slid 55.3 in March to 54.7, well above the 50-fold mark that had been separating growth from contraction since 2012, but just above the bottom of the trough six years, the series returned to January.

The contraction in expansion was due to lower new orders, whose sub-index fell from 55.7 to 54.1, the lowest in two and a half years.

"While the rate of expansion has remained solid despite reports of improved customer demand both domestically and internationally, some stakeholders have indicated that Brexit had a negative impact on sales, "said AIB chief economist Oliver Mangan.

"The more moderate growth in new orders has resulted in a smaller increase in arrears. Ongoing business edged up in April as the rate of accumulation slowed to its slowest pace in 69 months. "

Ireland has ruled out the initial uncertainty of the 2016 vote from its nearest neighbor to leave the European Union, posting the bloc's fastest economic growth for five consecutive years.

However, a corresponding survey conducted earlier this week among manufacturers showed that the growth rate of the latter was the slowest since the day after the vote on Brexit, also due to a moderation of new orders.

"Overall, AIB Services' April PMI reading of 54.7 indicates that the Irish economy continues to grow at a satisfactory pace, even though it has not been as strong as in recent years. Said Mangan.