Business activity in the country's services sector signalled contraction for the first time in four months in May.
The NCB Services Purchasing Managers index fell to 48.9 last month from 52.2 in April due to a stagnation of new orders and fragile client confidence.
Any figure over 50 signals growth in a sector, while a figure under 50 signals contraction.
NBC noted that activity in the financial services sector was especially weak, which was not surprising given euro zone worries.
The survey covers the business services, financial services, technology media and telecoms sectors as well as the transport, travel, tourism and leisure sectors.
''Irish economic activity continues to fluctuate between expansion and contraction as the open nature of the Irish economy leaves it exposed to the economic climate abroad, which has once gain weakened,'' commented NCB's chief economist Brian Devine.
The index shows that overall new business decreased a little in May, ending a three month sequence of growth. Companies said that demand remained fragile, with clients reluctant to commit to new projects. However, new export orders continued to expand with the new business from the Middle East noted.
Service providers lowered employment marginally last month after no change in April. Where companies cut jobs, NCB said this was linked to a lack of growth in new business.
The rate of input cost inflation was muted in May and only slightly faster than April's eight month low, today's survey shows. Although fuel and energy prices rose in some cases, some companies said they had tried to reduce cost burdens during the month.
The index also revealed that the level of positive sentiment remained broadly unchanged from that seen in April. More than 44% of respondents predicted that activity will be higher in 12 months time than current levels, compared with around 16% that predicted a fall.
