The services sector grew for the twelfth successive month in November, although the jobs market continued to contract, fresh data has revealed.
Commentators hailed the figures as evidence that the economy is performing robustly despite deepening instability in global markets and said demand for services was set to escalate further next year.
But the rate at which business activity is expanding slowed moderately, the NCB stockbrokers purchasing managers' services index shows.
The seasonally adjusted growth rate fell to 53.9 compared to a 54.6 high for October, according to the index which is regarded as a barometer of overall health of the economy.
Significant growth in costs was recorded across all sectors, reflecting higher insurance charges, wage inflation and the underlying year-on-year increases in oil prices.
Efforts to keep rising costs in check fuelled a rise in redundancies for the fifth month running. Natural wastage accounted for some job losses but enforced lay-offs were also recorded.
The strongest performance for the third consecutive month was reported in the technology, media and telecoms sectors.
Transport, travel, tourism and leisure experienced weakened demand, although this decline can be attributed to seasonal factors, NCB said.
Financial services reported a marginal slowdown for the first time in 13 months. It has been suggested that cooling in the insurance sector was a contributory factor, said NCB.
Firms across the services sector experienced growth in incoming new business for the twelfth successive month, although the rate of increase slowed moderately.
Client confidence in indigenous markets demonstrated renewed signs of recovery, with respondents indicating that heavier emphasis on advertising and market campaign had fuelled demand.
The relative buoyancy of the index, which remains above the watershed 50-point margin, indicated indigenous industry was continuing to ride out the downturn amid robust consumer demand, said NCB's senior stockbroker, Mr Eunan King.
"The services sector continues to perform in a steady growth pattern based on buoyant domestic demand.
"Cost pressures continue, however, and employment continue to contract marginally as firm seek productivity gains."
Business confidence remained high, with the majority of the 600 private firms surveyed reiterating their belief that conditions in the domestic market would compensate for continuing uncertainty in the international sector.
