Ulster Bank Survey: December 'worst for NI private sector in a decade'

The four sectors covered by the survey - retail, services, manufacturing and construction - all posted a decline in output, with orders in construction affected most

December was the worst month for Northern Ireland's private sector in a decade, outside of lockdowns, an Ulster Bank survey has suggested.

The monthly survey of about 200 firms is considered a reliable indicator of the private sector economy.

Firms reported that the cost-of-living crisis was a key factor behind the drop in activity.

Last week, official figures suggested that Northern Ireland entered a recession in the third quarter of 2022.

• NI private sector 'in weakened state'

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Ulster Bank's chief economist, Richard Ramsey, said the four sectors covered by the survey - retail, services, manufacturing and construction - all posted a decline in output, with orders in construction affected most.

Mr Ramsey said the main positive indicator in the survey was more evidence that inflation may have peaked.

He said: "Inflationary pressures moderated with firms reporting the weakest rise in input costs in 22 months.

"As a result, firms raised their prices at their slowest pace in almost two years.

"But these price rises still exceed anything that occurred in the pre-pandemic era."

Official inflation data for December is due to be published on Wednesday.