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Services sector continues rapid expansion in January

The Investec Purchasing Managers' Index of activity in the services sector, came in at 62.5 in January
The Investec Purchasing Managers' Index of activity in the services sector, came in at 62.5 in January

The country's services sector expanded at near its fastest pace in eight years in January, although the rapid growth in new orders slowed somewhat. 

The Investec Purchasing Managers' Index of activity in the services sector, which covers businesses from banks to hotels, came in at 62.5, just short of December's reading of 62.6. 

The December reading was the highest reading since February 2007 and the sector has expanded for the last 30 months in a row. 

Today's survey showed that the new business sub-index was 62.8, its lowest level since August, but the rate of employment growth in January was the third highest in two and a half years.

"Taken together with Monday's Manufacturing PMI report, this release shows a solid start to 2015 for a sizable proportion of the private sector in Ireland," Investec Ireland chief economist Philip O'Sullivan said. 

A related survey on manufacturing released on Monday showed the slowest rate of growth in the sector since last May.