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Exports keep service sector growing

Service sector - Growth in June despite fall in new business
Service sector - Growth in June despite fall in new business

A survey shows that growth in the service sector of the economy accelerated in June, helped by continued growth in export orders.

The NCB Services Purchasing Managers' Index recorded 52.4, up from 50.5 in May. Any figure above 50 means activity grew.

New export orders rose solidly at 53.1, but overall new business fell slightly for the second month in a row, recording 49.4.

Employment levels also continued to fall, with this index unchanged from May at 48.1. Companies said the non-replacement of leaving staff was a factor in the latest fall.

But service companies continued to be strongly optimistic about the coming 12 months, with the confidence index standing at 60.3.

Input costs growth fell to the lowest level this year, at 51.8, despite some firms' reporting higher prices for fuel and raw materials. But prices charged by firms fell sharply, mainly due to intense competition. This index recorded 43.5.