Services employment increased last month amid strong growth in the sector, according to new figures from NCB.

Activity in services rose for the 13th consecutive month, the purchasing managers' services index for June shows.

A reading of 56.8 was recorded, weaker than May's figure of 59.2 but still demonstrating a substantial rate of expansion. A result over 50 indicates positive growth.

Increased demand had a knock-on effect on the labour market, pushing the employment index to 51.7. It was the 10th successive increase, although moderately weaker than May's 54.1 reading.

Costs climbed in tandem however, to 59.5. This was a slowdown from May's result of 62.4

Business confidence climbed sharply in the month, up to 74.4 from 73, the survey of 600 managers shows.

Service providers continued to highlight the pressure of high oil prices and rising wage bills, the survey said, while rates charged by firms fell for a 15th month.

Commentators said that while activity was growing, the pace remained moderate.

Mr Eunan King, senior economist at NCB, said: "Overall activity continues to grow strongly, though it's not accelerating. The encouraging thing is that expectations continued to accelerate. However, competition remains tough as input prices continued to rise and charges to fall."

Services account for more than half of gross domestic product and over 65 per cent of employment.

Employment growth was strongest in technology, media and telecoms at 58.4, followed by transport, travel, tourism and leisure (57.5), business services (55.9) and financial services (53.7).

Technology and telecommunications had the highest level of activity increases, with a 64.5 reading. Financial services registered 59.1 on the PMI, transport, travel, tourism and leisure 58.1, and business services 55.5.