The AIB Ireland Services PMI eased to 50.7 in March 2026 from 51.8 in February, indicating the weakest expansion in activity since August, as growth in new business slowed. New business declined in two sectors—financial services and transport, tourism & leisure—while rising only modestly in business services. Overall, new export business across the service sector was broadly unchanged in March.
Employment fell for only the third time in the past five years, though the decline was marginal. Job numbers edged down in three sectors, with financial services the only area to record a modest increase.
On the cost side, input price inflation accelerated to a three-year high, driven mainly by higher fuel and energy costs, increased wages and pension contributions, and more expensive raw materials. Supply chain disruption linked to the war in the Middle East added further upward pressure on costs, prompting firms to raise their selling prices.
Business sentiment weakened to its lowest level since October 2020, reflecting concerns over the impact of the Middle East conflict on the global economy.
