Business confidence in Northern Ireland lowest since summer 2020

Businesses in Northern Ireland reported the sharpest fall in new orders in the UK last month, according to an Ulster Bank survey.

Cost pressures and economic uncertainty is said to have had the biggest impact.

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

It was the sixth monthly fall in activity in a row for Northern Ireland.

All 12 UK regions contracted in October.

Despite this, companies continued to expand their staffing levels as part of efforts to rebuild workforce numbers following the pandemic.

Ulster Bank Chief Economist, Richard Ramsey, said Northern Ireland firms posted the biggest drop in incoming work last month of the 12 UK regions.

He said: "Despite falling demand, all four sectors - manufacturing, services, retail and construction - increased their staffing levels in October.

"Firms suggest that this pick-up in hiring is linked to long-standing recruitment difficulties and rebuilding workforces following the pandemic."

The survey suggests inflationary pressures and the cost of living crisis are continuing to impact on business confidence which fell to its lowest level since August 2020.

Mr Ramsey added: "Given the evolving 'cost of everything' crisis, it is not surprising that business confidence sank to a 26-month low.

"All four sectors anticipate lower levels of activity in 12 months' time. Sentiment is not likely to improve anytime soon, with this week's Autumn Statement expected to yield more fiscal pain rather than comfort."