Business activity in Ireland's key services sector continued to grow in September but at a slower rate than in August, a survey showed today.
The seasonally adjusted NCB Purchasing Managers' Service Index eased to 57.3 from 58.1 the previous month, but it remained above the critical no-change mark of 50.0. Business confidence rose to 75.8 from 73.6.
"Activity continues to hold up well, suggesting that supportive domestic factors dominate. The outlook remains optimistic and employment continues to grow," said NCB Stockbrokers' senior economist, Mr Eunan King.
The survey said service providers continued to report the need for increased employment. Overall staff numbers grew for the 13th month running, reflecting a marked rate of improvement in new business.
Many of those surveyed were confident there would be a sustained period of economic recovery and growth in world markets.
"Some particular mention was made of expected improvements in new business from the United States helping to drive future growth in organic activity, while a number of other firms reported that expansion would be driven by acquisition," the survey said.
Figures released yesterday showed Ireland's economic growth was picking up pace, with the Department of Finance reporting a sharp reduction in the country's budget deficit as it reaped higher returns from personal taxes.
The Department expects gross domestic product growth (GDP) of 4.7 per cent this year and 4.2 per cent for gross national product (GNP), although economists have said GDP growth could be as high as 6.5 per cent - one of the best performing economies in the euro zone.