Growth in Ireland’s services industry accelerated in May to its fastest pace since December 2007 as business confidence and new orders continued to rise, a survey shows.

The NCB Purchasing Managers’ Index rose to 52.4 from 51.0 in April, when it broke through the 50 barrier separating growth from contraction for the first time in 27 months.

Business sentiment rose to its highest in more than two-and- a-half years, with the sub-index for business expectations up to 70.7 from 65.4 from April.

The Irish government expects the economy to return to growth in the second half of the year following the eurozone’s longest-running recession, though some economists say growth could already have taken place in the first quarter.

“The euro-area sovereign debt worries, which are weighing on financial markets, do not appear to be affecting the mood in the real economy,” Brian Devine, economist at NCB Stockbrokers, said.

“Confidence at Irish service providers rose to its highest level in two years with new orders continuing to rise.”

Another PMI survey on June 1 showed Irish manufacturing activity further improved in May driven by expanding output and new business while employment saw its first rise in two and a half years.

Consumer confidence in Ireland dropped only slightly in May, another survey showed.