Northern Ireland's private sector economy contracts again

Some retailers are expecting the economy to pick up next year

Northern Ireland's private sector economy contracted for a fifth consecutive month in November, a regular Ulster Bank survey suggests.

However, the rate of decline appears to be easing.

The service sector, excluding retail, bucked the wider trend and posted an increase in activity.

Every month the bank asks a representative sample of firms about issues such as new orders, employment and exports.

Retailers subdued

The bank's chief economist, Richard Ramsey, said there were signs that some companies were expecting the economy to pick up next year.

"Sentiment amongst services firms hit a 22-month high but, given the ongoing cost-of-living squeeze and rising mortgage costs, it is perhaps not surprising that retailers remain relatively subdued about prospects for the year ahead," he said.

Northern Ireland's economy started 2023 relatively strongly but official data and business surveys suggest it has been slowing since the spring as rising interest rates and the cost of living squeeze hit demand.

Later this week the latest official data will show what was happening to services and manufacturing output between July and September.

Despite slowing activity, the labour market has remained relatively strong, with the most recent unemployment rate at an all time low.

The Ulster Bank survey also suggests that firms were continuing to recruit in November.