DUBLIN, (Reuters) - Growth in Ireland's services sector fell in August from July's nine-year high as the pace of new business slowed after expanding at its fastest in a decade and a half in the previous month, a survey showed on Thursday.
After surging by more than 5 percent in 2014, Ireland's economy is set to be the fastest growing in Europe again this
year. Data last week showed retail sales volumes rose by almost 10 percent year-on-year in July.
The Investec Purchasing Managers' Index of activity in services, which covers businesses from banks to hotels, fell to 62.1 from 63.4 in July and has stayed above the 50-point line separating growth from contraction for over three years.
While overall new business fell back from July, when it recorded the third-highest mark since the series began in 2000,the sub-index measuring new export business rose to 60.1 in August from 58.1, the sharpest expansion in seven months.
"With close to 20 times as many firms indicating that they expect to see a rise in activity over the coming year compared
to those predicting a decrease, it is clear that most services firms are positive on the outlook for the sector," Investec Ireland chief economist Philip O'Sullivan said.
"Given the improving signs emanating from most of Ireland's key trading partners and the upturn in the domestic economy, we share this optimism."