NI private sector has 'shaken off Omicron slowdown' - Ulster Bank

Northern Ireland's private sector started 2022 "on a positive note" but firms are still facing "plenty of headwinds", according to Ulster Bank.

The bank asks firms across the private sector about things such as staffing levels, order books and exports, in what is considered a reliable indictor of economic performance.

New orders in January rose for the first time in five months.

The survey found growth in business activity also hit a seven-month high.

The pick-up was partly driven by services such as hospitality, as well as manufacturing reporting incoming business rose at its fastest pace since 2014.

However, there were signs of job creation easing with firms struggling to find staff.

Inflationary pressures are still a big challenge.

Energy costs

Last month, an Ulster Bank survey found growth in the private sector "almost ground to a halt" in December as the Omicron variant of Covid-19 hit economic activity.

But Richard Ramsey, Ulster Bank chief economist for Northern Ireland, said the region's private sector has "shaken off the Omicron induced slowdown" seen that month. with things looking better since the start of the new year.

"Whilst inflationary pressures have moderated from their record highs, they remain a significant challenge," Mr Ramsey said.

"Mounting wage and energy costs are leading to ongoing increases in input costs and companies are also continuing to pass this on by increasing the prices they charge.

"Overall, the January PMI is a positive report but whilst Omicron and indeed Covid as a whole are fading, skills shortages, the cost-of-living crisis, and Northern Ireland's latest round of political instability will bring plenty of headwinds to challenge firms in 2022."