The Irish services sector expanded at a robust rate in October to drive further growth in employment, an industry survey showed today.
October's Purchasing Managers Survey shows the services sector grew for a 17th consecutive month, although the pace of expansion has slowed for a third successive month.
The business activity index recorded a reading of at 57.0 in the survey, which measures any reading over 50 as expansion.
But the rate of inflation faced by service providers was again marked in October and was higher than in the previous month. The main underlying pressure on costs was reported to have come from higher oil prices and rising pay claims.
October's data showed higher average charges being levied by services for the first time in the past nineteen months.
Respondents said inflation of charges was a reflection of rising average costs, although strong competition continued to suppress the extent to which firms could raise their rates.
Mr Dermot O'Brien, chief economist at NCB Stockbrokers, said the results show growth in service sector activity remains robust and confidence is running at a high level. "The fact that employment growth strengthened in October is a very positive sign," he said.