Services activity growth accelerated in May: Index
May saw the strongest growth of services activity since December 2000, according to the NCB Purchasing Managers’ Services Index for the month.
The latest survey period saw almost two-fifths of respondents point to a month-on-month increase in activity.
The activity was good news for employment levels, which saw the fastest rate of acceleration since February 2001. Panel members reported that the recruitment was necessary to meet rising workloads.
However, service providers indicated that average costs also rose at a strong and accelerated rate in May. Anecdotal evidence showed that input price inflation principally reflected growth in staff salaries and an increase in the cost of oil-related items, particularly fuel, according to the index.
The increased cost pressures were passed on to consumers as "modest" increases, the report said.
The data derives from questionnaires sent to a panel of around 600 Irish private services companies that have agreed to supply regular information on trends in their activity levels.
