(RTTNews) - Ireland’s services activity contracted at the slowest pace since March 2008, a survey by Markit Economics and NCB Stockbrokers said Wednesday.

The seasonally adjusted Business Activity Index rose to 47.4 in October from 45.5 in September, remaining in the contraction zone. A reading above 50 indicates expansion, while a reading below 50 signals a contraction.

New orders stabilized in the month, as aggressive sales secured new business, with new export orders rising for the second consecutive month, and at the fastest pace in two years. Outstanding business continued to fall, with the backlogs having declined continuously since September 2007.

Employment continued to fall, but at the weakest pace since in 13 months. Input prices declined because of lower salary payments and increased competition. Input prices have declined continuously since January. Moreover, output prices dropped for the 15th consecutive month, due to increased competition and weaker demand.

Commenting on the results, Brian Devine, economist at NCB Stockbrokers said, ” Domestic activity is likely to remain weak and is largely price dependent. The choice for many retailers appears to be cut prices and lose profit margin, or, maintain prices and lose volume.”

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Posted in Categories: Economy, Eurozone, Releases.

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