STRONG increases in new business ventures and products helped the service sector expand last month, figures showed yesterday.

The Chartered Institute of Purchasing and Supply's (CIPS) purchasing managers' index found the sector grew for the 13th consecutive month as market conditions remained buoyant.

Levels of business activity and outstanding work grew faster than the previous month, while employment increased at a slightly faster rate.

Strong gains in new work, product development and continued marketing activity helped the headline business activity index rise to 59.0 from 58.7 the previous month.

Although levels of incoming new business rose for a 12th consecutive month, this index grew at a slightly slower pace compared with March.

Service providers said conditions for conducting business were favourable and that clients were highly active during the period.

Gains in work were particularly strong in the hotel and restaurant, transport and communications and business-to-business categories.

This substantial growth in new work put pressure on service providers as they struggled to deal with backlogs, the CIPS said.