Higher workloads encouraged firms to expand their operating capacity, and to this end employment increased to the greatest extent in nine months. Companies generally expect these trends to be sustained, supporting further optimism around the 12-month outlook. Meanwhile, cost pressures continued to build and output prices were again raised at one of the fastest rates in the past decade.

The headline seasonally adjusted Business Activity Index ticked up to 57.8 in April, thereby signalling a sharp monthly rise in activity, and one that was slightly faster than seen in March (57.4). Activity has expanded continuously since November 2013, with the latest increase supported by improving economic conditions.