CSO data shows services businesses rebounded in May

/ 7th July 2022 /

The Services Index from the Central Statistics Office for May 2022 shows that the value of services rose by 0.7% compared to April, while the volume rose by 1.7%.

The sectors with the highest monthly volume increases were administrative and support service activities, up 5.7%, and professional, scientific and technical activities, which rose 3.9%.

Administrative and support service activities, which rose 8.1%, and professional, scientific & technical activities, up 6%, recorded the largest monthly value increases.

CSO statistician Stephanie Kelleher commented: “In May several sectors showed an increase in activity compared to the previous month. The volume of services output in May 2022 increased by 1.5% when compared with April 2022 on a seasonally adjusted basis.

“By value, decreases were recorded in other service activities (-5.9%) and accommodation & food service activities (-0.2%). By volume, other service activities (-7.3%), information & communication (-3.3%), wholesale & retail trade (-2.6%) and accommodation & food service activities (-0.8%) were the sectors to show a decrease in the volume of activity in the month.”

According to Davy, the message from the figures is that the post-pandemic recovery has accelerated into Q2 2022 despite the squeeze from inflation, helped by large annual gains in accommodation (27%), food services (15%) and transportation (11%) output in the three months to May.

Davy now expects that Irish GDP should see another sharp gain in Q2. The broker expects to revise up its forecast for Irish GDP growth in 2022 from 8.2% currently into double-digit territory.

Compared to before Covid, the value of services in May 2022 was 19.5% higher than February 2020.

The sectors to show the largest increases since February 2020 are information & communication (+39.1%), wholesale & retail trade (+12.0%) and professional, scientific & technical activities (+10.8%).

The sectors which have still not caught up with hteir pre-pandemic trading are accommodation & food service activities (-8.5%), other service activities (-3.5%) and administrative & support service activities (-3.4%).