The Irish service sector grew sharply in August, according to the latest NCB Purchasing Managers' Service Index.
The Purchasing Managers' Index (PMI) for the services rose to 53.5 in August from 51.9 in July. This was the third successive month above 50, the dividing line between expansion and contraction.
The figures are also the highest since November 2002.
NCB economist, Mr Dermot O'Brien, said: "After three months of solid gains and with the overall index at its best level since November 2002, the rebound in the services sector is beyond doubt".
"Taken together with the improvement in manufacturing signalled earlier this week by the purchasing managers' survey for that sector, the economic outlook has brightened considerably," Mr O'Brien added.
The survey showed an increase in the level of new business for the third successive month. However, employment levels fell for the 14th successive month.