NI unemployment rate below 2% for the first time

Northern Ireland’s unemployment rate has dropped below 2% for the first time, according to official figures.

Meanwhile NI’s private sector continued to grow in July and may have performed better than the UK average, an Ulster Bank survey suggests.

Every month the bank surveys a representative sample of local businesses.

It indicates that the NI private sector has grown throughout 2024 and in July new orders were up markedly while inflation showed continued signs of easing.

'A successful second half of 2024'

The latest official data suggest the jobs market remains relatively strong with company payrolls continuing to grow in July.

Ulster Bank’s chief economist, Richard Ramsey, said ‘everything seems set up for firms to have a successful second half of 2024.’

Mr Ramsey added that the expansion in business activity in Northern Ireland was the strongest of all the UK regions and nations covered by the report.

However, he cautioned that there are still differences between sectors.

Manufacturing and services showed growth while retail and construction output was flat in July.

House prices increase

Meanwhile an Ulster University survey suggests house prices in Northern Ireland increased by 2.5% in the second quarter of this year and transactions were up by 10% compared to the first quarter.

Lead researcher Dr Michael McCord said there were signs of "increasing momentum as interest rates have stabilised, inflation has eased to target levels, and there is an increasingly competitive borrowing environment."

Official house price data for the second quarter is due to be published later this week.

Northern Ireland’s economy has performed better this year than many economists had expected.

Last month, the Ulster University Economic Policy Centre (UUEPC) revised its 2024 growth forecast up from 0.8% to 1.4%.

Last week researchers at the National Institute of Economic and Social Research said their economic model suggests the Northern Ireland economy will show "a significant productivity increase by the end of 2025," albeit from a low base.