Business activity quickened in May following the easing of foot-and-mouth restrictions, the latest NCB purchasing managers' services index said yesterday.
The business activity index recorded 52.6, up from last month's marginal fall at 49.8. Readings above 50 indicate growth. But the pace of growth remained well below that seen last summer, according to the index of 535 Irish private services companies.
"The relaxation of foot-and-mouth disease restrictions had a noticeably positive impact on services sector activity in May, especially in tourism," said Mr Dermot O'Brien, chief economist at NCB Stockbrokers.
A sharp rise in the already high rate of input-price inflation was recorded in May. "The sustained upward pressure on wages and salaries was most commonly blamed for the latest rise in input costs, but some firms also pointed to high oil prices and the current weakness of the euro," the index said.
The index said optimism with regard to future business activity levels in the Irish services economy remained strong, with firms slightly more confident than in the previous month. But by recent standards, the degree of confidence remained subdued.
