Business activity growth in the services sector was sustained for the 13th consecutive month in June, but the rate of growth was slower than in May, a survey published on Monday showed.
The Purchasing Managers' Services Index, compiled by NCB Stockbrokers, eased from May's level of 59.2 to 56.8, still keeping well above the critical no-change mark of 50.0.
"Overall activity continues to grow strongly though it is not accelerating," NCB senior economist, Mr Eunan King, said. "The encouraging thing is that expectations continued to accelerate [in June]. However, competition remains tough as input prices continued to rise and charges to fall," he added.
The business confidence component of the index - whose findings are based on a survey of 600 Irish private services companies - showed strong optimism that activity levels would be higher in one year's time than at present.
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. Businesses reported an increased need to recruit additional staff for the tenth month in a row, although the pace of employment growth eased compared to May.
The services sector accounts for more than half of gross domestic product and over 65 per cent of employment.