Services sector growth continues

Activity in the services sector expanded for the second month in a row in March, although the pace of growth slowed slightly.

The NCB Services Purchasing Managers Index showed both new business and new export orders continued to grow during the month, boosting the headline index to 52.1 last month. That was slightly lower than the 53.3 recorded in February, but remained above the 50 mark that separates expansion from contraction.

New business recorded 52.1 for the month, down from 53.5 a month earlier. New export orders, meanwhile, rose slightly from 55.2 to 55.5 in March.

Confidence was at its highest level in almost two years, recording a reading of 70.4 compared with 66.9 a month previously.

Employment continued to grow, at 51.9 compared with 47.9 in February. NCB chief economist Brian Devine said this was “a positive sign coming on the back of the expansion in employment in Q4 2011”.