NI economy: Growth slowed in second quarter, survey suggests

The NI Chamber and BDO surveyed 263 companies in late May and early June

Growth in the economy appears to have slowed in the second quarter of 2022 and businesses confidence is weakening, a new survey suggests.

The NI Chamber and BDO surveyed 263 companies in late May and early June. A majority of those were still trading positively.

However inflation is starting to hit business performance and expectations.

The chamber said wages were a "very strong driver" of pressures with rising utility and fuel costs also featuring.

Just over 50% of businesses still expect turnover to grow in the next 12 months but that compares to 70% in the final quarter of 2021 and 60% in the first quarter of 2022.

More than 90% of respondents agreed that the UK could go into recession if current economic conditions persist.

'Adapted well'

The survey has been tracking business attitudes to Brexit and the Northern Ireland Protocol since 2016.

The latest results suggest continuing adaptation: 43% of respondents said they had "adapted well", up from 33% in the same period last year.

However 10% of respondents said they were still facing "significant challenges" although that has fallen from 16% in the same period last year.

More than 40% of businesses said Brexit had negatively impacted on their ability to access skilled staff.

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Meanwhile industry figures show that 3,539 new cars were sold in Northern Ireland in June, down 13% on the same month last year.

However on a year-to-date basis sales were up by just over 1% to 21,139.

The Society of Motor Manufacturers and Traders (SMMT) say that sales for the UK as whole were down by 24% last month, the worst June performance since 1996.

Global shortages of components such as semiconductors continue to hamper manufacturers' ability to fulfil demand, with 141,000 new cars registered in June, the trade body said.

SMMT chief executive Mike Hawes said: "The semiconductor shortage is stifling the new car market even more than last year's lockdown.

"Electric vehicle demand continues to be the one bright spot, as more electric cars than ever take to the road."