Services firms are enjoying robust growth, according to a survey today that indicates the sector is growing at the fastest rate in three years.
The seasonally adjusted Purchasing Managers' Index (PMI) rose to 60.6 from 58.1 in February, indicating the pace of growth had accelerated for a second consecutive month to the fastest in almost three years.
Mr Dermot O'Brien - chief economist at NCB stockbrokers said the positive data shows the buoyancy of the domestic economy and "solid justification" for expectations that GDP growth in 2005 will better the 4.9 per cent rate for 2004 published last week.
Service firms reported higher levels of new business to reflect strengthening demand and high levels of consumer and business sentiment. Strong marketing drives and increased sales efforts were also said to have contributed to the improvement.
Employment is the sector is also seen picking up as forms react to the higher business volumes.
The PMI is derived from questionnaires sent to a panel of around 600 Irish private services companies that have agreed to supply regular information on trends in their activity levels.