Ireland's services sector expanded at its softest pace in four-and-a-half years last month, a survey showed today.
The NCB/NTC purchasing managers' index fell to 51.9 from 53.5 in December. That was above the 50 mark that separates growth from contraction but was the worst reading since July 2003.
"Weakness in the construction and real estate sectors contributed to lower activity at some firms," said NTC Economics, which compiles the survey.
The new export component contracted to 48.3 in January from 53.4 the month before, also hitting its weakest since July 2003.
NTC said the decline was linked to a "general worsening" in demand from overseas buyers.
Overall new business barely expanded at 50.4, much weaker than December's 53.3 and its lowest level in more than four years.
"Anecdotal evidence suggested that turbulence in financial markets and a deterioration in conditions in the construction and real estate sectors had contributed to slower new order growth," NTC said.
On the upside, business expectations recovered strongly from December's near six-year low, rising to 68.5 from 62.9. The employment reading also rose to 50.9 from 50.8, showing companies creating marginally more jobs than they cut.