IT leads the way in value of services rebound

The value of services increased by 2% in just a month, with the IT sector in particular driving the increase. 

Latest figures from the Central Statistics Office (CSO) for June 2022 show that the value of services increased by 2.0% when compared with May 2022.

Information & communication (+4.5%) and accommodation & food service activities (+2.3%) recorded the largest monthly value increases.

The value of services output was 21.5% higher in June 2022 compared with June 2021.

The surge is explained somewhat do by a very low base at the same time last year due to the Covid-19 pandemic. 

The value of services in June 2022 was 22.7% higher than February 2020 (28 months earlier and pre-Covid-19).

The volume of services in June 2022 increased by 1.5% when compared with May 2022.

The sectors with monthly volume increases in June 2022 were Information & Communication (+6.7%) and Accommodation & Food Service Activities (+1.0%).

Output is the total value of goods and services produced and is similar to the business accounting concept of turnover.

In general, the CSO said increased Output is a sign of a growing economy, while Output generally declines in a recession.

CSO statistician Stephanie Kelleher advised “caution” in interpreting the annual increases however, as “the comparison is with a very low base from a year ago”.

Many restrictions were still in place in June 2021, following the spread of the Delta variant of the coronavirus. 

Services were 17.3% higher in volume terms in June 2022 compared with June 2021.

The volume of services in June 2022 was 21.4% higher than February 2020 (28 months earlier and pre-COVID-19).