Activity in the Republic's services sector increased in June but the rate of growth stayed subdued compared to the same period last year, a survey published today showed.
The NCB Purchasing Managers' Services Index for June, compiled by NCB Stockbrokers, recorded a level of 53.7, to signal growth of overall business activity for the second successive month after a marginal contraction in April.
The service economy has staged some recovery from the dip in the early part of the year. Financial services are doing well but the remaining sectors are noticeably below the pace of growth seen last year, NCB senior economist Mr Eunan King said.
The rate of growth of new business recorded in June was the fastest for four months, and staffing levels continued to rise, according to the data, provided by 535 Irish services companies.
The firms surveyed continued to report the inflationary effects of unstable oil prices, the weak euro and strong upward pressure on wages - the latter as a result of labour shortages.
The degree of business confidence recorded by the survey was largely unchanged from the previous month.
Optimism remained well down on that seenthrough the second half of 2000 and the first quarter of 2001, NCB said.