Ireland's services sector expanded at its weakest rate in almost four years last month, according to a survey released today.
The NCB/NTC Purchasing Managers' Services Index, based on a survey of about 600 Irish companies, fell for the third month in a row to 54.9 in May from April's 58.1. That was the lowest reading for the index since August 2003.
Firms reported slower new business growth as customers held off placing orders until after the election.
The PMI was still above the 50 level, however, that divides growth from contraction, and the pace of jobs growth picked up to 55.5 from a two year low of 54.6 in April.
A companion survey of Ireland's manufacturers published last week showed jobs being cut in that sector last month at the fastest pace in nearly four years.
Ireland's cooling property market and an expected slowdown in house building this year have prompted some concerns over the outlook for the broader economy.
Economists believe growth will again outstrip other European countries this year and next, however.
"The election and uncertainties in the construction sector were mentioned as factors adversely influencing activity," said NCB Stockbrokers Senior Economist Eunan King.
A political debate ahead of the election over reform of stamp duty has been blamed, along with higher euro zone interest rates, for a marked slowdown in the property market.