The service sector of the economy grew slightly in June following two months of contraction, according to the latest Purchasing Managers' Services Index from NCB Stockbrokers.
The business activity index recorded 50.2 in June. Any figure over 50 indicates growth.
NCB economist Eunan King said the improvement was due to increased confidence in the wake of the Iraq war and reduced fears about the spread of SARS. Growth in new business was recorded after two months of contraction.
But companies cut employment levels for the 12th successive month, though the rate of decline was slight.
Firms also reported increased pressure on costs in June - the first rise since January - mainly due to higher wages and salaries. They also cut their charges at the sharpest rate since the survey began in May 2000.
