Orders help improve sevice figures
Wednesday, 4 November 2009 09:09A report has shown that activity in the service sector of the economy fell at its slowest rate for more than 18 months in October.
The NCB services purchasing managers' index rose to 47.4 from 45.5 in September, though any figure below 50 means that activity still fell. The October figure was the highest since March 2008.
The report showed that new orders fell only marginally in the month, with export orders showing growth for the second month in a row.
Though there was a further sharp fall in employment, the drop was the smallest for 13 months. Costs fell more quickly than in September, with companies saying this was due to lower salaries and increased competition.
'Anecdotal evidence suggested that increased activity in both the Middle East and Eastern Europe had contributed to the rise in new export business in October,' said NCB economist Brian Devine.
But he said domestic activity was likely to remain weak. 'The choice for many retailers appears to be cut prices and lose profit margin, or, maintain prices and lose volume,' he said.
