Weak demand and falling customer orders meant activity in the Northern Ireland economy contracted for the fifth consecutive month in November.
Ulster Bank’s widely-watched purchasing managers index (PMI) also put the decline down to a slide in exports and, while still a negative figure, pointed out the rate of decline has waned in line with other regions of the UK.
In tandem, optimism amongst those company’s surveyed has improved across all four sectors, particularly in services which also saw an increase in business activity for the first time in five months.
The report said conditions in the labour market remain tight with firms reporting increased wage costs and struggled to fill vacancies with suitable candidates.
“Nevertheless, the pace of hiring quickened in November due to services firms with construction and retail also adding to their headcount,” Richard Ramsey, chief economist in Northern Ireland for Ulster Bank, said. “Manufacturing was the exception, reducing employment for the first time in 11 months.”
Two sectors which weren’t as optimistic for the coming months were retail and construction.
“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,” Mr Ramsey said. “Meanwhile, the construction sector, which has reported falling orders for the last twenty-nine months, expects business activity to be flat (at very low levels) by November next year.
“Given the slowdown in housebuilding coupled with the dire outlook for the public finances in the short-to medium term, this is perhaps not surprising."
