The services sector expanded last month at its weakest rate since February 2005 as job creation and new business growth slowed, a survey showed today.
The NCB/NTC Purchasing Managers' Services Index, based on a survey of about 600 companies, fell to 58.1 last month - its lowest level since February 2005 - from 61.4 in March.
However, it is still comfortably above the 50 level that divides growth from contraction.
"The slower pace of activity growth was confined to the business services and technology, media and telecoms sectors," said Dermot O'Brien, chief economist at NCB Stockbrokers.
Slower jobs growth, shown by a fall in the employment gauge to 54.6 in April from 56.8 in March, was largely felt in the business services sector, he added.
That helped drive the employment index to its lowest point since April 2005 in its sixth fall in the last seven months.
Companies pointed to improved underlying demand both at home and abroad, but at 57.8 the rate of expansion in new business was also at its lowest since February 2005, and down from 61.9 in March.
Firms' costs also rose at a slower pace, although companies said skills shortages were still pushing up salary levels.
Relatively high inflation in the services sector has been a key factor in keeping annual increases in the country's consumer price index around the 5 per cent mark in recent months.
However, business confidence improved to 72.0 from 71.4 the month before.