DAVY VIEW

This morning’s services PMI reading of 54.1 has fallen to a 19-month low, with orders softening due to cost pressures and uncertainty – particularly in transport, tourism and leisure. However, Ireland compares favourably to the euro area (48.9) and UK (49.2) flash services PMI readings – suggesting the economy is holding up better. Ireland’s manufacturing (51.5) and composite (52.2) PMI readings are still well above the 50 no-change level.