Foot-and-mouth disease and the global slowdown in high-tech industries took their toll on the Irish services sector last month, according to a survey published today.
The Purchasing Managers' Services Index for April, compiled by Dublin's NCB Stockbrokers, recorded its first fall in business activity since the monthly survey began a year ago.
NCB chief economist Mr Dermot O'Brien said: "The surprisingly sharp fall in overall business activity in the services sector reflects thecontinued impact of foot-and-mouth disease restrictions on tourism and business services."
But the global slowdown in high-tech businesses significantly affected activity in Ireland in the month.
The business activity index figure for March was 49.8, compared with 56.1 the previous month. The figure is expressed as a diffusion index - a figure above 50 represents a rise on the previous month and below 50 a fall.
Despite the drop in activity, business confidence in April remained high, the report said, with nearly three-fifths of the 535 firms surveyed expecting to be busier in a year's time.
The business confidence index figure was 72.3, compared with 76.1 in March.