The latest survey from NCB Stockbrokers shows that the service sector of the economy grew for the 14th consecutive month in July.
The NCB Purchasing Managers' Services Index rose to a level of 59.4 from 56.8 the previous month - the highest level since November 2003. Any figure above 50 signals growth.
Firms reported that July's improvement was in line with increasing volumes of new business during the month, as well as continued efforts to promote and advertise services in the hope of stimulating further demand in the months ahead.
'The Services Sector PMI mirrored the strength seen in the Manufacturing Index, rising to 59.4 from 56.8,' commented Eunan King, Senior Economist at NCB Stockbrokers. 'This was the highest level of the index since November 2003'.
He said that New Business, at 60.8, was at its best level since December 2000 and rose strongly compared to June.
An 11th successive monthly gain in net staffing levels was recorded in July. However the need for increased capacity was again balanced against efforts to restrict cost growth.
Service providers continued to face strong inflationary pressure in July, the NCB index reported. The high price of oil played a major role in driving up costs, while rising wage and salary claims were also reported by a number of panelists.
July's data shows that business expectations regarding activity levels in a year's time remained strongly positive. Service providers expressed confidence in further economic recovery.
'The sharp upturn in business outstanding suggests the recovery will continue and bodes well for employment,' Mr King said. 'The employment index bounced back sharply from the June dip. Pricing power remains muted. The overall economy appears to be in good shape,' he added.
