Survey shows business activity rising in Northern Ireland as growth continues fourth month in a row
Overrall business activity across Northern Ireland has continued to grow for a fourth month in a row according to the latest survey by Ulster Bank with May having the slowest growth of any month this year.
Although there has been growth, construction and retail were the two sectors in which growth decreased.
The survey suggests that the growth is linked to easing rates of expansion in output and employment whilst a slowing rate of inflation to the lowest levels its been in two-and-a-half years also has also helped businesses.
Demand also generally improved amid market confidence however there were some reports of interest rate hikes and political stagnation limiting growth.
Richard Ramsay, Chief Economist Northern Ireland at Ulster Bank said: "NI's private sector notched up its fourth successive month of growth in business activity in May, albeit it was the slowest rate of expansion in this sequence.
"Employment growth also eased to a four-month low but local firms increased their staffing levels at the fastest rate of all UK regions bar Scotland. New orders maintained the same modest rate of growth as April.
"A welcome slowdown was also evident in inflationary pressures, with input cost and output price inflation easing to its weakest level in around two-and-a-half years. It is encouraging to note that NI's inflationary pressures are the least marked across the UK regions.
"There were some reports of energy prices coming down, with ongoing inflation linked to higher wages.
"In terms of sectors, services was the only one to record a rise in business activity in May, with construction and retail joining manufacturing in contraction territory. Services also posted the strongest rise in new orders, followed by retail.
"Retail's recent purple patch of growth in sales and orders appears to have passed although retail is still recruiting hard. Meanwhile the slump in construction orders continued and is approaching two years of continuous decline.
"But again, construction firms are increasing staffing levels to address long-standing skills gaps.
"Encouragingly all four sectors expect growth in business activity in 12 months' time, with manufacturing the most optimistic and retail the least. But firms said that hikes in interest rates and political stagnation have been impacting on growth and cuts in public expenditure are also a concern.
"None of these factors is expected to go away any time soon."
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