Services sector indicates first signs of growth after four-month lull

The services sector grew for the first time in four months in August, a survey showed yesterday, as a rise in new business at home and abroad helped shelter Ireland somewhat from a slump in the rest of the eurozone.

The NCB Purchasing Managers’ Index (PMI), which measures activity in the services sector, rose to 51.7 in August from 49.7 in July, moving just above the 50 mark that separates growth from contraction.

The modest growth in Ireland contrasts with flash figures for the eurozone as a whole which showed a seventh successive month of contraction last month. The flash survey fell to 47.5 as the bloc’s debt crisis hammered business and consumer confidence.