The country's services sector returned to growth in February, with activity rising at the fastest pace since the same month last year.
The latest NCB Services Purchasing Managers' Index rose to 53.3 in February from January's reading of 48.3 with companies saying that aggressive sales strategies helped to boost new business. Any figure over 50 signals growth in an area, while a figure below 50 is a sign of contraction.
The survey shows that business sentiment also improved in February, with the level of optimism the strongest in a year. But staffing levels continued to fall due to both redundancies and resignations. Employment numbers have fallen for the 10th month in a row, but the February fall was the smallest since last November.
The rise in overall new orders was the first in three months, NCB noted, while new export business orders expanded for the seventh month in a row and at the sharpest pace since February 2010.
Input costs rose again last month due to higher fuel costs, while companies lowered their output prices due to intense competition for new business. Charges have now fallen every month since August 2008.
NCB said that the increase in the PMI last month was a welcome development given the weak house price and retail sales data in January.
NCB's chief economist Brian Devine said that both new business and new export business expanded, but employment continues to decline.
'Ultimately employment growth will be required for there to be a meaningful recovery in the Irish economy and to date this is still elusive across the economy and also within the services sector,'' he added.
