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Strong services sector growth improves in September - PMI

The Services Purchasing Managers' Index rose to 58.7 from 58 in August
The Services Purchasing Managers' Index rose to 58.7 from 58 in August

Growth in the country's services sector improved to a three-month high in September, a survey showed today, prompting firms to tap an increasingly tight labour market and hire staff at the fastest pace this year. 

The Services Purchasing Managers' Index (PMI) rose to 58.7 from 58 in August. 

The index has remained above the 50 mark that separates growth from contraction since August 2012. 

The services sector covers areas as diverse as communication, financial and business services, IT and the tourism trade.

The sub-index measuring employment increased to 58.2 from 58 a month earlier following a survey earlier this week that showed an even sharper pace in the rate of growth of hiring in Irish factories.

While Irish factory growth gave up some momentum as a whole, it remained comfortably above the euro zone average as an escalating global trade war slowed growth across the bloc to a two-year low. 

"Latest PMI data indicated that the Irish economy continued to perform strongly at the end of the third quarter," said Andrew Harker, Associate Director at IHS Markit. 

"Companies responded to increasing workloads by taking on extra staff at a pace not seen since the end of last year. Confidence around future growth of activity also improved, boding well for a positive end to 2018," he added.