Activity in the services sector increased in December for the first time in five months, a survey published today showed.
The Purchasing Managers' Services Index (PMI) for December, compiled by NCB Stockbrokers, recorded a level of 52.2 - the first increase since July's 50.1. A figure above 50 signals growth; below 50 is contraction. November's figure was 47.0.
"The sharp jump in services PMI in December, with activity once again in expansion mode, is very encouraging after the uncertainties of recent months," said NCB chief economist Mr Dermot O'Brien in a commentary on the figures.
The survey, compiled from data provided by 604 Irish services companies, said many firms reported responding to new demand that had been postponed in the immediate aftermath of the September 11th attacks on the US.
Ireland's manufacturing PMI, published on Wednesday, was 47.7, up on October's low of 46.1 and November's 46.4 - but still below the 50.0 break-even level.
In its recent winter economic bulletin the Central Bank said growth in the economy - which hit double figures in 2000 - appeared to have slowed to around zero in the final two quarters of 2001.
The bank predicted gross national product growth of about 5.5 per cent for 2001 and 3 to 3.5 per cent for 2002.