Ulster Bank says business output in NI growing again

Business output returned to growth at the start of the second quarter of this year, an Ulster Bank survey suggests.

Business confidence among Northern Ireland firms is at a 14-month high but rising costs continue to cause concern.

Every month the bank surveys private sector firms about various issues and the result is regarded as a reliable indicator of economic performance.

The bank's chief economist Richard Ramsey said that April's survey had indicated the most optimism for months.

"It's the first time Northern Ireland's private sector has recorded expansion of business activity since last September," he told BBC News NI.

"We are seeing a big improvement in business conditions and overall we are seeing a significant rebound in April."

That was linked to strong growth in the UK and an easing of Covid-19 lockdown restrictions, said Mr Ramsey.

"The worst is behind us in terms of the slump or the collapse in demand that we saw last year under full lockdowns," he said.

"We are going to see a pickup in unemployment later in the year."

'Increased costs'

New orders rose but exports posted what has been described as "another sizeable fall".

Firms also reported supply chain disruption and an increase in costs.

• NI economy predicted to grow by almost 6% in 2021

Mr Ramsey said: "Adapting to the Northern Ireland Protocol is one aspect of the increasing cost of doing business.

"However, it isn't the only source of disruption.

"Economies around the world have seen a lengthening in suppliers' delivery times due to the pandemic and worldwide shipping issues such as a shortage of shipping containers.

"Linked to this, Northern Ireland firms once again reported a record rise in input costs stemming from higher prices for raw materials and fuel coupled with increased shipping costs.

"In turn, companies are also passing these increased costs onto their customers at a record rate."