There was a surge in new business for the services sector in October, although overall expansion activity eased last month, according to the seasonally adjusted NCB Purchasing Managers Index.
The index fell to 60.1 in October, down from 63.5 in September. A reading higher than 50 indicates expansion.
According to NCB, 35 per cent of respondents said activity had increased since September, with 14 per cent reporting a decline.
Employment numbers in Irish services firms also increased last month.
Dermot O'Brien, chief economist at NCB, said: "Although the latest PMI reading is the lowest so far this year, the rate of activity growth remains very strong".
Mr O'Brien said service sector confidence was at a high level. The input prices paid by services firms also increased sharply. However, the rate of cost inflation slowed for the fourth consecutive month.
The index showed that 55 of service firms had an optimistic outlook for business activity.