Service providers see busier December

There was a solid rise in business activity among service providers in December, according to the latest NCB purchasing managers’ services Index.

Business activity has now expanded in each month since June 2003.

Although an improvement on November’s 52-month low, the rate of activity expansion in December was well below the levels recorded earlier in 2007.

The seasonally adjusted Business Activity Index registered 53.5, well below the expansionary period average of 59.0.

Senior economist at NCB Stockbrokers Eunan King said: "While the overall index rose to 53.5 from 52.8 there was a sharp fall in confidence to its lowest level since September 2001. This would appear to be related to worries about the construction sector and its implications for the wider economy.

"While we would not share this view, it has received considerable publicity and obviously is influencing expectations."