The Irish services sector grew at its fastest pace more than two and a half years in June,
According to the NCB Services Purchasing Managers' Index, the sector, which is considered key in terms of creating jobs, saw a rise in both new orders and exports during the month, with the overall index increasing from 52.4 in May to 55.4, its fastest rate since October 2007.
The new business component of the grew to 54.0, while new export business was at its highest level in almost three years. Business activity rose for the third month in a row.
NCB economist Brian Devine predicted growth in gross national product (GNP), which excludes the contribution of foreign-owned businesses operating in Ireland, of 2.8 per cent in 2011.
However, despite the renewed optimism about the economy, unemployment levels will not drop significantly in the near future. The employment sub-index of the survey was 47.5, indicating continued contraction.
"The services sector is the key sector in terms of employment creation and as such the rise in output in this sector is encouraging," Mr Devine said.
"It will, however, take some time before the rise in output filters through to net job creation."
NCB said the unemployment rate would average 13.7 per cent this year before reaching 12.6 per cent in 2011.
