The AIB Ireland Services PMI declined to 51.8 in February 2026 from 54.5 in January, signalling the slowest expansion in the sector since August. Financial services (55.4) remained the main driver of growth, followed by business services (51.2) and transport, tourism & leisure (50.2). In contrast, technology, media & telecoms (49.9) slipped into marginal contraction.
Overall new business growth eased to a six-month low. New export orders rose modestly, but activity in transport, tourism & leisure softened slightly. Despite the cooling in demand, backlogs of work increased for the fourth time in five months, and employment continued to rise, extending an almost five-year run of uninterrupted job creation.
On the price front, input costs stayed high, close to a three-year peak, driven by increased wage, pension, energy, fuel and transport expenses. However, the rate of output price inflation slowed sharply from January’s high, pointing to some pressure on profit margins.
Looking ahead, business confidence strengthened, supported by expectations of new projects and client wins, although sentiment remained below its long-run average.
