The ECB’s Governing Council meeting for June saw the central bank cut its key interest rates by 25bps. The Deposit rate was lowered to 3.75% (from 4.00%), while the refi rate was reduced to 4.25% (from 4.50%). The June rate changes follow five consecutive policy meetings where the ECB kept rates on hold, having been in a rate hiking cycle between July’22 to September’23.

The latest AIB PMI® survey data indicated a faster increase in Irish service sector activity in May, as new business growth strengthened. The 12-month outlook also improved, and this was reflected another robust rise in services employment. There was a notable rebound in the Technology, Media & Telecoms sector, while Financial Services continued to expand sharply.

AIB Ireland Manufacturing PMI® data signalled a broad stabilisation in operating conditions in May as the headline index from the survey ticked up to a three-month high. Softer and only marginal contractions in output volumes and incoming new work were recorded during the latest survey period.