Irish services activity rose for the eleventh month in a row in November, but optimism was lower than average, new data showed today.

The NCB Services PMI rose to 52.7 from 51.5 in October, the sharpest growth rate since February.

New business showed growth for the first time since April, rising from 49.7 the previous month to 52.6, with new orders from both new and existing clients. "The pace of increase was solid, and the fastest since February," the survey said.

New business from abroad grew at a faster pace than in October, although the rise was modest, marking the fourth month of increase in export orders. The index recorded 52.2 for November, compared with 50.1 in October.

Although companies remained optimistic of an increase in activity in the coming year, the level of optimism was below the long-run series average, recording 60.7 for November. In October, that reading was 63.4.

Companies were basing their expectations on rising new business, export growth and increased marketing activities.

However, despite the growth in the sector, employment in the sector fell during the month as companies restructured and failed to replace departing staff.

"Although staffing levels decreased for the seventh consecutive month, the rate of job cuts was the weakest in this sequence, and only slight," the report said.