The services sector grew strongly last month, according to new figures from NCB stockbrokers.

The purchasing managers' services index climbed to 58.7 in April from 55.8 in the previous month - the 11th successive monthly rise and the sharpest since December. A reading over 50 signals growth.

Services employment grew also, increasing for the eighth month running. The employment index hit 54.8 from 52.1 in March.

Costs remained high, although the rate of inflation eased slightly, while competitive pressure meant that average prices charged by firms fell for the 13th month in a row to 47.9.

Commentators said the data were evidence of emerging services sector buoyancy.

Mr Eunan King, senior economist at NCB, said: "The data for April showed a broad range of strength in the service sector of the economy. The overall index rose to 58.7, an acceleration and well above the neutral 50 level. This is the highest since December.

"The rise in incoming new business was particularly impressive. It was accompanied by an acceleration in the backlog of work and in employment. Margins remain under pressure as input costs continue to grow and charges decline."

April's purchasing managers' index was 53.9, a slight dip on 54.4 for the previous month.

NCB said the increase was driven by stronger demand in domestic and export markets. There was a knock-on effect in the labour market as employment climbed for the third successive month.