Irish services cool amid trade tensions with transport under pressure

Ireland’s services sector lost steam in April, with international trade tensions and market volatility dragging sentiment and demand down to the weakest level in over a year. The AIB Services PMI fell to 52.8 — still in growth territory, but now well below its long-run trend.

Transport, Tourism & Leisure was hit hardest, marking its sharpest contraction in over two years and the steepest drop in new orders since early 2023. While other sectors like Tech and Financial Services kept expanding, the transport industry’s back-to-back monthly declines suggest deeper strain as global uncertainty filters through to local demand.

Despite headwinds, hiring remained surprisingly strong, and inflation pressures eased — offering some cushion. Still, business expectations are at their lowest since 2020, highlighting just how jittery the outlook has become.

Will the slowdown ripple further through transport supply chains?
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