Growth in service sector slows marginally in April

Activity in the services sector expanded again last month, albeit at a slower rate.

Investec’s latest Purchasing Managers’ Index fell slightly to 60.6 in April, marking the slowest rate of expansion since February last year.

Anecdotal evidence suggests that general improvements in economic conditions had supported activity growth as clients were more willing to commit to new contracts, the survey said.

The sub-index for new business rose for the 33rd month in a row and at a sharper pace with respondents reporting higher new business from both domestic and export clients.

New business from abroad also rose but at the slowest since May 2013 with respondents pinpointing the UK as a key driver of growth in new export orders, perhaps on the back of the weak euro.

Increased new business also led companies to raise employment in April with job creation recording a gain for the thirty-second successive month. However, the pace of employment growth fell to an 11-month low.

Rises in wages and salaries contributed to another increase in input costs, while higher utility costs and the recent weakness of the euro also cited.

"Taken in tandem with last week's Investec Manufacturing PMI Ireland release, it seems that the overall narrative is one of continued growth, albeit at a slightly slower pace, at the start of Q2 2015," Investec's Philip O'Sullivan said.