By Andras Gergely
DUBLIN, Jan 6 (Reuters) - Ireland's services shed jobs at the fastest pace in more than 8 years last month and companies reported deep pessimism about the year ahead as a weak global economy and strong euro hurt businesses.
At 34.1, the headline gauge of the NCB Purchasing Managers' Index survey of services companies -- ranging from banks to haulage firms -- marked a contraction in the sector that was second only to November's record low of 32.6 in severity. The measure was still far below the 50 level where growth begins.
The employment gauge showed jobs being cut at the fastest pace since data began to be collected in May 2000, falling to 33.4 from 36.8 in the previous month.
"Each of the four broad sectors (Business, Financial, TMT and Travel & Tourism) monitored by the survey recorded falling activity in December, although the rates of decline varied markedly," said Brian Devine, economist at NCB Stockbrokers.
The travel, tourism and leisure sector suffered the steepest decline due to a strong euro and weak domestic demand, while technology firms remained relatively shielded from the downturn, Devine said.
Business confidence in December was the second lowest in the survey's history, showing pessimism exceeded only by November's series record, said Markit, which compiles the survey of about 600 Irish companies.
Hit by a weak global economy and the strength of the euro versus sterling, new export orders continued to decline, registering the second biggest fall since that series began in June 2002, after October 2008's series low.
Backlogs of work fell at a record pace and for the 16th month running.
Ireland was the first euro zone country to slip into recession last year and despite a surprise rebound in the third quarter the government has forecast the economy will shrink between 3 to 4 percent in 2009.
However, the euro's strength against sterling and falling oil prices helped to hold down input prices, which rose only marginally in December.
The European Central Bank is widely expected to cut its benchmark interest rate again on Jan. 15 from the current 2.5 percent as the global economic slowdown quashes inflation.
(Editing by Ruth Pitchford)