Business activity levels in the services industry have recorded their most significant rise in 18 months, according to the NCB Purchasing Managers Index(PMI) published this morning.
The rate of expansion has been most notable since the beginning of April and is reported to have accelerated in each of the past three months.
Data for September also showed most managers are optimistic about growth prospects for the future.
Employment in the sector was also up for the first time since June 2002, a reflection of the increased levels of new business, according to the survey.
However, the survey also showed there was continued risk from increasing costs with the rate of inflation in the industry during the month of September up slightly on August.
In response, the industry has become more competitive with a gradual decline over the past six months.
Overall, the business activity index recorded a significant growth posting its most significant rise since April 2002.
The survey attributes the growth to an overall resurgence in economic sentiment which was underlined by an increased volume of enquiries and, in some cases, an increased client base.
Increased business confidence was also recorded in the four main services industries - business services, financial services, IT, and transport and tourism - with the Incoming News Business Index rising from 52.9 in mid-August to 55.3 in September.
The survey covers all private sector services in Ireland, excluding retail and wholesale, and consists of a questionnaire sent to 600 firms across the country.