NI economy sees growth but Russia-Ukraine changes outlook
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NI's economy reported improved growth last month, but Russia's invasion of Ukraine has changed the economic outlook, according to a survey.
Every month the Ulster Bank surveys businesses across the private sector.
They are asked about staffing levels, exports and new orders in what is considered a reliable indicator of economic performance.
February suggested improved growth, with firms reporting the sharpest pick up in new orders in seven years.
Despite this, firms were only able to raise employment reporting difficulties finding staff.
Rates of inflation remained high but showed further signs of easing.
The survey looks at services, manufacturing, retail, and construction.
'Concerns over Covid-19 fading fast'
Last month, was the first time all four sectors recorded growth since last June.
Manufacturing was the best performing by "a significant margin".
New orders rose at their fastest pace in seven-and-a-half years.
Only construction failed to record an uplift in new orders last month.
'Supply chain disruption'
Ulster Bank chief economist Northern Ireland Richard Ramsey said: "With concerns over Covid-19 fading fast, Northern Ireland's private sector posted a surge in activity in February.
"February's PMI report was therefore very encouraging across a number of levels. However, the economic outlook has changed drastically with Russia's invasion of Ukraine.
"Commodity prices have rocketed, and an unprecedented array of sanctions have been imposed on Russia.
"Businesses, therefore, face a new source of supply chain disruption."
He said the primary concern was with the people of Ukraine but warned that businesses and households in Northern Ireland were also set to be affected by the situation "most particularly through the rampant inflation in energy and food prices, as well as the general uncertainty".
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- Published9 March 2022
