Ireland’s services sector grew for the 20th month in a row in March and optimism among companies was at its second-highest level since March 2005, a survey showed on Thursday.

The Investec Purchasing Managers' Index (PMI) of activity in the services sector, which covers businesses from banks to hotels and accounts for 70 per cent of economic output, rose to 60.7 in March from 57.5 in February. Readings above 50 point to growth in activity in the sector.

In a positive sign for the export sector, the subindex for new export business among services firms rose to 62.8 from 60.6.

Nearly 58 per cent of panellists expected activity to be higher in 12 months’ time, with just 5 per cent predicting a fall, the survey found.

Having exited an international bailout programme in late 2013, Ireland now wants to make sure its economy can grow by the 2-3 per cent needed to drive the public debt down after two years of near stagnation.

Reuters