The AIB Ireland Services PMI increased to 54.7 in May 2025, up from April’s 15-month low of 52.8, mainly boosted by a faster rise in new work. However, the expansion in the services sector remained below the long-run trend level of 55.1 (since 2020), as both outstanding business and employment growth eased. The pace of job creation was the weakest since January’s pause in recruitment. Meanwhile, the level of outstanding business increased at the slowest rate in four months, weighed down by a fifth decline in six months in the transport, tourism, and leisure sector. Three of the four sub-sectors posted higher growth in business activity, led by technology, media, and telecom. Regarding prices, input cost inflation eased to an eight-month low, while output cost inflation accelerated and remained well above the long-term average. Finally, business sentiment improved marginally, despite ongoing uncertainty in international trade conditions.