Services sector growth 'marginal'

The Irish services sector rose marginally in November as uncertainty over the economy hampered growth.

The NCB Services Purchasing Managers Index was 50.8 in November, just above the 50 mark that separates expansion and contraction.

Business sentiment declined to its weakest since July 2009, and new business orders declined marginally.

The financial services sector was particularly hard hit, with a marked reduction in business activity during the month. The sector recorded the first negative sentiment since April last year, and follows modest growth in October.

Transport and leisure firms declined on an unadjusted basis.

However, there was a solid rise in new export business, with the rate of expansion the fastest since June. The UK market was a key source of growth, the survey said.

There was also a substantial increase in activity in technology, media and telecoms companies, and business services activity also grew during the month.

"The weakness of domestic demand was evident by the fact that new orders fell in November, despite robust demand from those servicing the export market," said NCB economist Brian Devine.

"Confidence has been clearly damaged in recent months by all the issues surrounding the fiscal and banking crisis. Confidence in the sector fell to its lowest level since April 2009."

Employment continued to fall in the services sector, but at a slower rate.

Input costs also fell again in November, and Irish services companies lowered output charges sharply over the month.