Companies in the services sector reported a marked expansion in overall business activity in August, according to the latest purchasing managers' services index.
The monthly survey compiled by NCB stockbrokers recorded a reading of 58.1, well above the no change mark of 50 and so signalling an expansion in activity.
Commenting on the survey, Mr Eunan King, senior economist at NCB said the services PMI remains close to the highest levels of the year and overall confidence remains high, if somewhat below the early months of this year.
"Employment growth was up again towards the fastest pace of the year. Overall the report paints a picture of solid activity," Mr King said.
Growth in new business was sustained at a marked pace in August. Firms reported that the latest improvement was in line with favourable economic conditions, although it was suggested that some clients had been attracted by promotional offers and discount rates.
Employment growth in the Irish services economy was sustained for the twelfth successive month in August. Employment growth stemmed from the sustained period of increased new business, and the resulting pressure on backlogs of work.