The services sector of the Irish economy continued to show greater resilience than manufacturing, according to the latest NCB Purchasing Mangers' Index released today.
The business activity index for October rose for the third month in succession. The index came in at 54.6 in October - its highest level since May. An index reading of above 50 indicates expansion and a sub-50 figure indicates contraction of the sector.
Commenting on the survey, NCB senior economist Mr Eunan King said the strong performance of services is further evidence that domestic demand is largely independent of the relatively small foreign-owned manufacturing sector.
"Indeed, business confidence in the service sector is reported as generally unperturbed by current geopolitical worries affecting foreign counterparts," Mr King said.
But inflationary pressures, most notably from wage and insurance costs, continues to drive up costs. Increased oil prices are also reported to be taking their toll.
The survey, which questions about 600 Irish companies on conditions and trends, also found firms will continue to cut staff for cost reasons even as conditions improve.