NI services sector slowed sharply at start of 2025

Services is the largest part of the NI economy, covering a broad range of activity including retail, hospitality, and finance

Growth in Northern Ireland's services sector slowed sharply in the first three months of this year, official data suggests.

Services is the largest part of the NI economy, covering a broad range of activity including retail, hospitality, and finance.

Growth in the first quarter of the year was just 0.1%, compared to 1% in the final quarter of 2024.

Business services, which had been the best-performing part of the local economy, saw output fall by 4.5% over the quarter.

Transport and communication show growth

Output in retail and hospitality also declined slightly.

The only broad services sector to show growth was transport and communication, with output up by almost 5% over the quarter.

Manufacturing also had a difficult start to the year, with output down by 2.7% over the quarter.

The weak start to the year had been predicted in various business surveys.

Ulster Bank's monthly survey suggested that Northern Ireland's private sector had been slowing since the end of last year.

It also indicated that business confidence had been knocked by rising taxes and other costs.

However, the bank's most recent survey, covering May, pointed to an improving picture, with non-retail services and manufacturing reporting increased activity.

Other official data published this week suggests the local job market remained relatively strong in the first quarter of this year.

The Quarterly Employment Survey (QES) showed an increase of just over 8,000 jobs in the first three months of the year.

The QES surveys about 6,000 companies, covering all employers with 25 or more employees and all public sector employers.