Job expansion in the Republic's services sector reached a six-month high in September during which new business orders expanded at a robust pace, according to the NCB stockbroker's latest survey of the sector.

Adjusted for seasonal changes, September's reading in the main index, of current business activity, was 63.5 compared with August's reading of 60.7, a six-month low. Any level above 50 indicates growth in the sector, which now accounts for two thirds of the Irish economy.

Some 40 per cent of businesses reported an expansion in business, the 39th successive month of growth. Work outstanding rose to a 69-month high of 58, compared to 55.1 in August.

The survey's indicator for job creation rose to 61.3, up from 59.7 in August and the highest reading in over six years.

One-third of firms reported an increase in staffing levels compared with August as firms hired extra staff to meet increased workloads caused by new orders. The strongest rise was in the business services sector.

While many businesses continued to face sharp hikes in input costs last month, due to increased wage and input costs, greater demand allowed them to pass on these costs in the form of higher prices, the survey revealed.

"Growth in the Irish services sector remains on a solid upward trend with strength in new business, lengthening backlogs of work and accelerating employment growth," NCB Stockbrokers' chief economist, Dermot O'Brien, said yesterday.