Ireland's dominant services sector grew again in February, with firms reporting increased business despite uncertainties in international markets, a closely-watched survey showed today.
NCB Stockbrokers' Purchasing Managers Services Index recorded a level of 51.2 - unchanged from January and above the critical no-change mark of 50 for the fifteenth consecutive month.
"Growth in services continues and optimism in the sector remains generally high despite the prevailing international uncertainties," NCB chief economist Mr Dermot O'Brien said.
"Cost pressures are still strong, however, and continue to pose a threat to employment in the sector," he added.
Average service sector costs were reported to have risen sharply in February, with wage inflation remaining strong and rising oil prices affecting a broad corss-section of firms, the survey showed.
Although there was some degree of negative sentiment surrounding issues relating to a looming war in Iraq, the majority of firms surveyed maintained an upbeat outlook for activity in the year ahead.
The services sector in Ireland accounts for more than half of gross domestic product and over 60 per cent of employment.