FX.co ★ Irish Service Sector Growth Hits 15-Month Low

The AIB Ireland Services PMI experienced a decline in April 2025, dropping to 52.8 from the three-month peak of 55.3 recorded in March. This figure represents the most subdued expansion in the service sector since January 2024, amid rising anxieties about the economic effects of global trade tensions. Both total activity and new business grew at their slowest rates in 15 and 18 months, respectively. Within this framework, three out of four sub-sectors saw an increase in business activity, with the technology, media, and telecommunications sectors at the forefront. Employment growth continued at the second-quickest pace over eight months, though it showed a slight deceleration from the prior month. As for pricing, inflation of both input and output costs eased to a five-month low, with noticeable relief in price pressures within transport, tourism, and leisure sectors during this period. Finally, business sentiment fell to its lowest point since October 2020, attributed to uncertainties regarding the consequences of US tariff policies and instability in financial markets.