NCB Index shows economy still growing

The latest NCB Purchasing Managers' Services Index shows that activity in the service sector of the economy grew for the 10th month in a row in March, though the rate was slower than the previous month.

The business activity index recorded 55.8, which was down on February's 57. Any figure above 50 signals growth.

Volumes of incoming new business continued to rise at a marked rate.

March's data also showed the seventh successive monthly gain in net staffing levels in the services economy.

The pace of growth increased slightly and firms reported that measures to increase their workforces were reflective of strong growth in new business and rising backlogs.

NCB economist Dermot O'Brien said: "While growth continued in clearly positive territory, the pace slowed for business activity and new business.

"It is nonetheless encouraging to see employment accelerate to its best level since December.

"Input costs continued to rise while keen competition kept charges falling."

The survey indicated a further sharp rise in average costs over March with the rate of inflation accelerating.