Coronavirus: NI service sector shrank at start of 2021, figures show

The Northern Ireland service sector shrank in the first quarter of 2021 as a lockdown disrupted many businesses.

Official figures show output was down by 2.1% from the previous quarter and down by 3.3% when compared to the same period in 2020.

However, output was almost 19% higher compared to the most disruptive phase of the pandemic in the second quarter of last year.

The sector will have returned to growth in recent months as the lockdown eased.

The figures also illustrate the contrasting experiences of different parts of the economy.

Output in "other services", which includes hair and beauty, was down 23.5% year-on-year as the lockdown meant businesses could not trade.

By contrast, the business services and finance sector saw output expand by more than 11% as companies adapted to remote working.

New figures for manufacturing and production show a more mixed picture.

Output in the first quarter of 2021 was 2.8% higher than the same period in 2020 but down by 1.1% compared to the previous quarter.

Manufacturing subsectors also show contrasting experiences.

The transport equipment sector, which includes aerospace, saw its output collapse by 43% on an annual basis.

Meanwhile the textiles sector, which is involved in making Personal Protective Equipment (PPE), saw output rise by 17% to reach its highest level in recent decades.