The Irish services sector witnessed its strongest growth since December 2000 in the past month, according to new figures.
The NCB Purchasing Managers' Services Index published today covers all private sector services in Ireland, excluding retail and wholesale, and claims to provide data on an area of the economy not covered by official figures.
In May, Irish service providers signalled a further strong rise in their business activity, NCB said.
In addition, jobs growth in the sector last month was the fastest since February 2001. Companies said the extra recruitment was necessary to meet rising workloads.
However, service providers also indicated that their average costs accelerated strongly in May, reflecting growth in staff salaries and an increase in the cost of oil-related products.
The seasonally adjusted Business Activity Index climbed to 61.2, from 59.8 in April, showing the fastest rate of growth since December 2000.
Almost two-fifths of 600 respondents to the NCB survey reported a month-on-month rise in activity.
Dermot O'Brien, chief economist of NCB, said: "Whatever the situation in other European economies, domestic activity in Ireland continues to power ahead.
"The NCB Service Sector PMI in May hits its highest level since December 2000, with strengthening growth in business and a high level of business confidence.
"This translated into a sharp acceleration in jobs growth with the employment index at its best level since February 2001."