The value of output in the services sector in the Republic rose by 2 per cent in June despite the cost-of-living squeeze, data from the Central Statistics Office (CSO) show.
The services sector covers a range of industries — everything from hotels, bars and hairdressers to IT firms and telecoms — and accounts for the lion’s share of activity in the economy.
The biggest monthly increases were recorded in the value of information and communication services, which rose 4.5 per cent, and accommodation and food services, which rose 2.3 per cent.
The value of output in the transport and storage category, however, fell by 4 per cent.
On an annual basis, the value of services was 21.5 per cent higher in June compared with the same month last year. When compared with February 2020, just before the pandemic, the value of services in June 2022 was 22.7 per cent higher.
All sectors showed an increase in activity compared with June 2021, with a number of sectors showing large annual increases.
The largest annual increases were in accommodation and food service activities (+95.2 per cent), transportation and storage (+48.9 per cent), other service activities (+32.2 per cent) and administrative and support service activities (+21.9 per cent).
However, the CSO cautioned that the year-on-year increases reflected comparisons with “a very low base”, as much of the economy was still impacted by Covid restrictions a year ago.
Separate data showed German investor sentiment fell slightly in August on concerns the rising cost of living will hit private consumption, and suggesting Europe’s largest economy is tipping into recession.
The ZEW economic research institute said on Tuesday its economic sentiment index fell to -55.3 points from -53.8 in July.
“The still high inflation rates and the expected additional costs for heating and energy lead to a decrease in profit expectations for the private consumption sector,” ZEW researcher Michael Schroeder said in a statement.
