Ireland’s service sector continued to grow at a fast pace in February - Investec's Purchasing Managers' Index of activity in the services sector hit 61.4. This was down slightly from January's near-eight year high of 62.5.

This is the 31st consecutive month that the index has shown growth. It dropped close to 30 at the height of Ireland's economic problems.

The expansion of the sector was bolstered by improving domestic demand - the new export business sub-index fell to 57.5 from 60.1 in January - this is its lowest level since May 2013.

An increase in new orders also prompted a sharp rise in employment in the sector.

Investec Ireland's chief economist Philip O'Sullivan commented on the figures: "Notwithstanding the softening of a number of the indices within the PMI survey, Irish services firms remain upbeat about their future prospects."

He continues: "Taken together with the manufacturing PMI release, the report confirms ongoing positive momentum for a sizeable proportion of the private sector in Ireland."