Services sector growth eased in December
Growth in Ireland’s services sector eased in December, bringing 2025 to a close on a softer note, according to the latest AIB Ireland Services PMI survey.
While activity continued to expand, the pace slowed to a three-month low as new business and employment growth moderated.
The seasonally adjusted Services Business Activity Index fell to 54.8 in December, down from a 42-month high of 58.5 in November.
Although the reading still points to solid expansion and remains close to the long-run average, it signals a cooling in momentum at the end of the year.
Despite the December slowdown, the final quarter of 2025 was the strongest since the second quarter of 2023, underlining the sector’s resilience.
Performance across sectors was mixed.
Financial services continued to lead growth, recording the sharpest increase in activity, while technology, media and telecoms saw a notable deceleration.
Business services posted only modest gains, and transport, tourism and leisure slipped back into contraction, marking the ninth decline for that sector during 2025.
New business volumes continued to rise but at the weakest pace in three months, with growth largely driven by domestic demand.
Export orders increased only modestly, with business services reporting a fall in international work.
Employment levels rose again in December, extending a long-running expansion, although hiring slowed sharply compared with November, partly reflecting job losses in the TMT sector.
Export orders increased only modestly, with business services reporting a fall in international work.
On the inflation front, cost pressures showed further signs of easing. Input price inflation fell to a five-month low, while prices charged to customers rose at the slowest rate in four months, though still above historical norms.
Looking ahead, service firms remained optimistic about the year ahead, citing investment plans, new products and improving EU and UK market conditions as key supports for growth.
