Confidence is returning to the services sector and firms are hiring more staff to fill orders, according to the latest sector survey published by NCB stockbrokers.
The Purchasing Managers' Index for April, which gauges overall activity in the services sector, rose sharply registering a level of 58.7 in April well above the no-change indicator of 50.
April was the 11th successive monthly improvement, and service companies reported sustained gains in new business.
Commenting on the survey, Mr Eunan King, senior economist at NCB, said the rise in new business was particularly impressive. "Margins remain under pressure as input costs continue to grow and charges decline", he said.
As a result of the pickup in business, firms reported they were hiring staff and the pace of recruitment isaccelerating as pressure mounts to fill orders.
Data for April showed that average costs in the services economy continued to be pushed higher.
Although the rate of inflation eased, firms reported that payroll pressures remained strong (in line with increased growth of employment and rising wage claims), while turbulent oil prices kept fuel an energy costs high.
A reduction of average charges was recorded for the 13th consecutive month, reflecting reports from panellists of competitive pressures. In addition, although new business continued to grow apace, it was indicated by some firms that, to achieve sustained gains, price incentives had been needed.