Telcos and tech to fore in service area surge
The Irish services sector grew at its fastest rate in November since June 2006 with transport and leisure companies leading the charge, according to the Investec Services Purchasing Managers' Index (PMI).
The rate of expansion in the sector accelerated to its strongest in the last 15 years while staffing levels have reached the highest in the PMI's history.
Technology, media and telecoms performed well as activity in the sector increased to near-record pace while financial services was the only area to record a weaker rise in activity.
"This is a very encouraging Investec Services PMI, as it reveals that activity in the sector is expanding at a blistering pace, while many components have improved to multi-year highs," said the PMI chief economist at Investec, Phillip O'Sullivan.
"The headline Business Activity index accelerated to 63.6 in November, implying the fastest rate of growth since June 2006, from October's 60.1 reading. Expansions in activity have now been registered in each of the past 40 months."
According to the PMI new orders grew to a three-month high and confidence in the sector has also risen substantially.
This is reflected in business sentiment - at its highest since January 2004. Higher staff costs and the weakening of the euro contributed to another monthly rise in input prices. Moreover, the rate of inflation accelerated to the sharpest since July 2008.