A survey released this morning shows that activity in the service sector of the economy fell at a record rate in May.
The NCB Purchasing Managers' Services Index stood at 43.9 last month, the lowest level in the survey's eight-year history. Any figure below 50 means activity is falling. The index has now fallen for five months in a row.
NCB chief economist Eunan King said business slowed markedly in May, with companies blaming weaker economic conditions, particularly in the construction sector.
The new business part of the index recorded 44.4, the lowest for six and a half years, while employment - at 47.3 - dropped at the sharpest rate since December 2002.
Companies reported that higher salaries and energy costs pushed the costs index up to 66.8. But prices charged by firms rose only marginally, at 50.4, with a number signalling that they were offering discounts to attract new business. Business confidence fell to the lowest level since September 2001, recording 59.3.
