DUBLIN (Reuters) - Irish services activity grew robustly again in September, a survey showed on Friday, as new orders expanded at their sharpest rate in over eight years to add further momentum to the fast-growing economy.
Ireland's economy is set to grow by almost 5 percent this year, far more quickly than much of the struggling euro zone. In the second quarter alone it expanded by 7.7 percent year-on-year after struggling to muster any growth for two years.
The Investec Purchasing Managers' Index of activity in the services sector, which covers businesses from banks to hotels, rose to 62.5 in September from 62.4 in August, leaving it just short of June's 62.6 - the highest reading in seven years.
The index has been above 60 for the past seven months and has not fallen below the 50-point line denoting growth since July 2012, when Ireland was midway through a three-year EU/IMF bailout programme.
The sub-index measuring new business climbed to 64.9 from 62.6, a level last achieved the May 2006 before Ireland's financial crisis took hold.
The data follows figures released earlier this week which showed solid expansion in the manufacturing sector as firms stocked up on inventories in anticipation of a further rise in new orders in the coming months.
"Taken together with Wednesday's Manufacturing PMI report, today's Services PMI data suggest that the Irish private sector experienced a strong finish to Q3," Investec Ireland chief economist Philip O'Sullivan said.
"The broad-based nature of the growth in activity and the very high level of optimism among service providers lead us to reaffirm our view that the sector will continue to grow strongly into next year."
Detailed PMI data are only available under licence from Markit and customers need to apply to Markit for a licence.