Good summer weather helped the country's services sector grow at its fastest rate in six years in August, a survey showed today.
The Investec Purchasing Managers' Index (PMI) of services sector activity rose to 61.6 from 57.6 in July.
It was the highest reading since February 2007 and far above the 50 mark that separates growth in activity from contraction.
"The principal cause of rising activity in August was the spell of unusually good weather in Ireland and the consequent boost to the tourism sector," said Investec Ireland's chief economist Philip O'Sullivan.
But he said that expectations for activity in 12 months' time remained broadly unchanged. "In saying that, with the headline index having improved for 13 consecutive months and service providers citing signs of improvement in economic conditions, the underlying trends are certainly positive,'' he added.
The services sector, which covers a range of businesses running from banks to hotels, accounts for 70% of Irish gross domestic product. It covers business services, financial services, transport and leisure and technology, media and telecoms.
Today's survey showed growth in new services business both in Ireland and in its trading partners, with the new business sub-index climbing to 59.3, its highest since March 2007, from 58.3 a month earlier.
New export orders expanded for a 25th successive month and hit a seven-month high. Companies also increased their staff numbers during the month due to greater workloads.
Mr O'Sullivan noted that while higher input costs hurt margins, increased volumes ensured that the profitability component of the index recorded its third month of expansion in a row.
