New orders boost growth in private sector

Retail, construction and manufacturing reported a pick up in new orders

A sharp rise in new orders boosted growth in Northern Ireland’s private sector last month, according to a survey by Ulster Bank.

Every month the bank asks firms about things like staffing levels, order books and exports in what is considered a reliable indicator of economic performance.

It suggests business confidence levels remained high in April and firms in Northern Ireland were taking on staff at a faster rate than anywhere else in the UK.

Three of the four sectors - retail, construction and manufacturing - reported a pick up in new orders.

Only services, which is the largest part of the economy and includes IT and hospitality, reported a slowdown last month.

However, cost pressures remain a significant challenge.

The survey suggests firms costs in April rose at the fastest rate in 12 months, as a result of the uplift in the National Living Wage coming into effect, as well as increased shipping costs caused by Red Sea disruption.

The bank’s chief economist Richard Ramsey said that despite these challenges firms remained optimistic about the year ahead.

“Overall, the latest survey offers encouraging signs about the state of the local private sector," he said.

“However, the challenges facing the public sector remain and these will impact on parts of the private sector in due course."