Services sector expands in January

Services sector business activity increased sharply in January according to new figures from NCB stock brokers.

The NCB Purchasing Managers' Services Index reported a reading of 61.4 last month, ahead of the 59.2 in December recorded in December. Any reading above 50 signals expansion.

The report also notes that cost inflation eased to a ten-month low last month.

Dermot O'Brien, NCB chief economist, said employment was growing strongly, with indicators suggesting another year of strong growth.

Among the firms questioned, 32 per cent had experienced input price rises with a majority commenting on higher salaries and electricity costs.