NI economy slowed in final quarter of 2023

Services account for just over half of economic output

Northern Ireland's economy slowed in the final quarter of last year, official data suggests.

Output in the services sector fell by 0.3% compared to the previous quarter.

Services is the dominant part of the local economy, covering a broad swathe of activity including retail, hospitality and business services.

Meanwhile the production sector, which includes manufacturing, saw output increase by 0.4% over the quarter.

The services sector accounts for just over half of economic output while production is around 15%.

Aside from business services, all subsectors saw a quarterly fall in output.

However services output is still close to a record high, and is 7% above its pre-pandemic level.

Business services and finance, which includes things like law, accountancy and management consulting, has seen particularly strong growth since the pandemic.

Its output is almost 30% higher than at the end of the pandemic - that may reflect the work that Northern Ireland-based staff do for UK and international customers.

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Manufacturing output increased by 0.7% over the quarter but the figures suggest that 2023 was a tough year for the sector as it faced cost inflation and muted demand.

On a rolling four quarter basis output was down by 2.1%.

There were significant divergences between subsectors: pharmaceutical output was at its lowest level since 2015 while the industrial equipment sector saw output climb to a record high.

Other data released this week suggests the local economy may have picked up since the start of the year.

Ulster Bank's monthly survey suggests the private sector was growing in January and February.