Marked rise in NI business activity, says survey

Output and orders in manufacturing grew at their fastest rate in over two years

Northern Ireland's private sector saw its order books grow at the fastest level in more than two years in June, according to a survey by Ulster Bank.

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

It suggests new orders increased at the fastest pace since February 2022, feeding through to what it described as a "marked rise" in business activity.

However, the rate of job creation was modest, amid some reports of difficulties sourcing new staff.

Strong growth

Ulster Bank chief economist in Northern Ireland Richard Ramsey said it showed Northern Ireland's private sector was in a much better condition than it had been in January.

"New order growth in Northern Ireland was the strongest of the 12 UK regions in June," he said.

The survey considers four sectors of the economy - services, retail, construction and manufacturing.

The bright spot in June was manufacturing, with output and orders growing at their fastest rate in more than two years.

But despite this demand, Mr Ramsey said staffing levels fell for the third month in a row, with manufacturers citing recruitment difficulties and challenges replacing those leaving the industry, which was constraining capacity to meet growing demand.

“The latest figures have been compiled in the mouth of a general election. But the private sector, like households, eagerly awaits announcements from the next government," he said.

"An emergency budget is expected, the only questions are when, and what will be in it?”