DAVY VIEW

Given that Ireland remained in its third lockdown in March, the rise in the Services PMI to 54.6 is surprising. Crucially, the PMI does not include retail/personal services sectors which were most affected. However, business, financial and media/technology firms reported the first rise in new orders since August and export orders in over a year. The message is that the impact of the third lockdown has attenuated for some firms and many are now preparing for the reopening of the economy over the next 12 months as vaccines are rolled out.