Figures released this morning show that activity in the service sector in May grew at its fastest pace for nearly six years.
The NCB Purchasing Managers' Services Index recorded 66.2, up from 65.5 in April and the highest figure since August 2000. Any figure above 50 signals growth.
NCB economist Eunan King said new business continued to grow strongly and employment growth remained close to its fastest pace in five years.
But the costs index reached its highest level since October, due to rising salaries and energy costs. Prices charged by firms hit their highest level for three and a half years as firms passed on the increased costs. Companies reported that an improvement in demand had led to increased pricing power.
