Northern Ireland sees fastest economic output rise since 2014

Retail was one of four areas which saw growth for the first time since January 2019

Lockdown easing in May caused economic output in Northern Ireland to rise at its fastest rate since 2014, according to an Ulster Bank survey.

However, inflationary pressures are also at a record high.

Every month the bank asks firms across the private sector about things such as staffing levels, exports and new orders.

The survey is considered a reliable indicator of economic performance across the region.

Services, which is the largest sector in the Northern Ireland economy, reported growth for the first time since the Covid-19 pandemic hit.

In May, growth was reported across all four sectors - manufacturing, retail, services and construction - for the first time since January 2019.

Cost hikes

Inflationary pressures were also rising at a record rate with firms in Northern Ireland continuing to deal with a rise in their input costs.

That means manufacturers, retailers and construction firms raised their prices last month at the fastest pace in the survey's 19-year history.

While Northern Ireland's economy is growing, there are warnings of challenges ahead

"Across the UK, Northern Ireland firms continue to experience the most severe rates of inflation with firms invariably linking the increased costs and lengthening delivery times to Brexit paperwork," said Ulster Bank Chief Economist Richard Ramsey.

While optimistic about growth in the next month or two, Mr Ramsey said significant challenges remain.

He said: "Global supply chain disruption and inflationary pressures, though expected to be transitory, will act as a headwind to the rapid recovery."

"Meanwhile as we saw last week, the continuing saga that is Brexit and the Northern Ireland Protocol, will be a source of political and economic turbulence for the foreseeable future," he added.