The Irish services sector expanded for the ninth month in a row in April, and the rate of growth hit a three-month high, a new survey showed today.

The headline rate in NCB Services Purchasing Managers' Index hit 55.2 last month, improving on March's reading of 52.3 and February's 53.6. The improvement was attributed to an increase in new business and growth in export markets.

Unadjusted data for the four sub-sectors - business services, financial services, transport and leisure, and technology, media and telecoms – show growth across all areas for the third month.

New export business expanded yet again, marking the 21st month in a row that it has grown.

“Unsurprisingly, it was mainly non-Eurozone markets that were cited as areas of particular strength during the month,” said NCB chief economist Philip O’Sullivan.

Employment also stayed in expansion territory, the eighth successive month it has done so, as staffing levels rose across the board.

However, it was not all positive news, with output prices shrinking and input prices continuing to grow, putting pressure on suppliers. Increased energy prices are being blamed for the rise in costs, while tough competition is forcing service providers to charge lower prices.

“Bringing them together, they represent an ongoing headwind on profitability in the sector,” said Mr O’Sullivan.