Ireland’s travel and hospitality industries experienced a slowdown in March according to the AIB Services Purchasing Managers Index recorded a reading of 50.7. This figure marked the weakest result in seven months and showed a decline from 51.8 in February.
The transport and tourism segment recorded an outright contraction with a reading of 47.6. The war in Iran and the resulting global energy shock affected businesses across the private sector. Input costs rose to a three-year high because of energy prices, wages and raw materials.
Business services registered 51.5, financial services 51.0 and technology, media and telecoms 51.4. Employment levels declined in the services sector overall. New business growth slowed to its weakest pace in seven months.
David McNamara, chief economist at AIB, shared that activity levels waned amid a slowdown in new business growth, weaker hiring, and rising costs linked to the war in the Middle East.
