Data released on September 3, 2026, showed Ireland's services sector expanded at its fastest pace in 2026 during August, according to AIB and S&P Global. The seasonally adjusted AIB Ireland Services Business Activity Index rose to 55.4 in August from 55.2 in July, marking the strongest growth since November 2025 and moving above its long-run trend of 55.0, tracked since 2000.
Financial services led sector growth for the first time since February, with a reading of 58.2. Technology, media and telecoms recorded 57.0. Business services posted its weakest growth in five months at 52.7, while transport, tourism and leisure registered its first activity increase in six months at 52.7.
New business growth accelerated in August, nearly matching June's seven-month high. Demand rose across all four sub-sectors for the second consecutive month. Export market growth remained broad-based but slowed to a three-month low.
Outstanding business at service providers rose for the third consecutive month at one of the fastest rates in two years. All four sub-sectors reported rising backlogs, led by transport, tourism and leisure.
Employment showed no change in August, following the fastest job creation rate in six months during July. This marked only the fourth time since March 2021 that service sector employment failed to rise.
Input cost inflation increased for the first time in four months, moving above the long-run survey trend while remaining the second-weakest in six months. Charge inflation also accelerated for the first time in four months, staying well above the long-run trend level.
Business sentiment strengthened for the fifth consecutive month, reaching its highest level since February 2025. The improvement was attributed to new business, investments, marketing, planned expansions and new projects.
The AIB Ireland Composite PMI Output Index rose to 55.4 in August from 54.9 in July, indicating the sharpest private sector expansion since November 2025 and coming in above the long-run average of 53.8.
