October shows fastest gain in services sector new business in over six years
THE fastest rise in new business in six and a half years was recorded in the services sector in October, new figures show.
The Investec Purchasing Managers' Index (PMI) of services sector activity gained for the 15th straight month to stand at 60.1 in October - up from 56.8 the previous month.
Anything above the 50 mark means growth - the sub-index for new services business also rose to 60.1 compared with 57.1 in September, it's fastest growth since March 2007.
“Both the new business and new export components saw their rate of expansion accelerate during October, with the UK cited as a key source of new export orders during the month,” said Investec Ireland chief economist Philip O’Sullivan.
“For some months now we have been expressing confidence that growth will accelerate into 2014 on the back of a stabilising domestic economy and improving export markets, with today’s report providing more comfort to that view.”
The services sector accounts for 70pc of Ireland’s gross domestic product and covers a range of businesses from hotels to financial services.