DAVY VIEW

This morning’s Irish Services PMI at 53.2 shows the sector slowing but with new business expanding, accompanied by jobs growth accelerating to a three-month high and sentiment on prospects for the year ahead also improving. Ireland’s Services PMI clearly compares well with the flash euro area (48.2) and UK (47.5) readings, which are signalling contraction. The PMI surveys are consistent with Ireland’s economy showing a relatively resilient performance despite the likely recession in Europe through the winter.