Ireland’s services sector delivered its strongest performance of the year in October, fuelled by a sharp rise in new business that pushed the AIB Services Business Activity Index to 56.7, up from 53.5 in September. This marks a significant resurgence from August’s sluggish 50.6. High-growth industries led the expansion: technology, media, and telecom posted a robust 60.9, while business services reached 59.2 and financial services 55.0. Export demand also strengthened, with firms reporting new international contracts — a positive sign for Ireland’s globally integrated services economy.
Yet, the upbeat activity was met with underlying caution. Employment growth remained modest despite stronger workloads, as companies hesitated to scale up staffing amid uncertain global economic conditions. Business sentiment dipped to a four-month low, driven by worries about demand durability and geopolitical tensions that could disrupt trade. Rising wage pressures pushed input costs higher, while output-price inflation hit its highest level since May, marking the third consecutive monthly increase. Despite these challenges, Ireland’s service sector remains a key engine of economic resilience, contributing more than 70% to national GDP and helping stabilise growth during a year of global volatility. More