Costs putting brake on services sector

THE Irish services economy recorded its strongest growth in five months but increasing wage and insurance costs are hampering further progress, it emerged yesterday.

The July NCB Stockbrokers/NTC Research services purchasing managers' index (PMI) for Ireland saw the Business Activity Index rise for the second month in a row, from 50.2 to 51.9 a reading above 50 indicates expansion and below 50, contraction. The greater the divergence from 50, the greater the rate of change.

NCB senior economist Eunan King said the acceleration in activity is at its highest since December.