The index has remained above the 50 no-change mark for over a year-and-a-half and well above the expected score of 58.
"The survey data point to the growing likelihood of yet another strong economic expansion in the third quarter," said,
"We would expect to see GDP rise by 0.8% again if the surveys hold their current levels."
A positive business environment boosted demand in July. The launch of new services, increased marketing and greater opportunities to tender for business supported activity growth.
Demand from both at home and abroad reportedly strengthened. With workloads rising, services employment increased at a historically marked rate.
The upward trend in hiring was extended into the second half of the year as staff were recruited in anticipation of further demand growth in months ahead.
Indicating capacity pressures, backlogs of work rose at a marked and accelerated pace during July. Business outstanding has now increased for sixteen months in a row.
However, the degree of positive sentiment among service providers was the lowest for eight months.
However, the PMI survey on the manufacturing sector signaled the weakest growth in a year in July, last week. The index fell to 55.4 in July from 57.2 in June. Meanwhile, construction activity grew at the fastest pace since 2007 in July led by increased house building work.
The central bank underestimates the slack in the
According to a paper co-authored by Blanchflower and
They argued that these adjustments are inappropriate as the
The central bank estimates spare capacity in the range of 1-1.5% of output. The next quarterly report elaborating bank's assessment will be released on
The NIESR today said the
The think tank said that the labor market is continuing its strong growth. Job creation is expected to improve further and unemployment is estimated to fall below 6% later this year.
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