The Northern Ireland economy appears to be bouncing back from the Covid-19 pandemic with aplomb as rates of hiring hit levels not seen in more than 19 years.
That’s according to the latest Ulster Bank PMI report which revealed that private sector companies, particularly those in manufacturing, were rushing to hire to keep up with an upsurge in new orders in May, which itself hit a 40-month high, following the relaxation of movement restrictions.
All indicators surged close to or at record levels, reflecting the reopening of a swath of business sectors and pent-up demand.
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Even the services sector, left battered and bruised by a series of lockdowns, poked its
head into positive territory when it came to new orders last month, the first time it has been in such a position since the pandemic took hold.
The only outlier was the construction sector which failed to see a pick-up in new orders for the sixth month in a row with incoming demand falling sharply. Countering that and perhaps offering a fillip for things to come, 海角视频 construction firms as a whole saw new orders hit the fastest growth rates to date.
And as with everything in the world of economics, there was a downside to the overall good news.
Rising costs meant input cost inflation surged once again, also hitting record levels while manufacturers, retailers and construction firms also ramped up prices.
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It is perhaps unsurprising that Northern Ireland experiences the most substantial input price inflation given the extra costs associated with importing goods from Great Britain.
Richard Ramsey, Chief Economist at Ulster Bank in Northern Ireland, expected further growth for the overall economy in the coming months but warned of continuing Brexit-related challenges.
“The outlook is certainly improving with local firms the most optimistic about output in 12 months’ time in over three years and sentiment in manufacturing hitting a new survey high,” he said. “Northern Ireland could well see a new high in output growth in the next month or two.
“Nevertheless, significant challenges remain. Global supply chain disruption and inflationary pressures, though expected to be transitory, will act as a headwind to the rapid recovery. Meanwhile as we saw last week, the continuing saga that is Brexit and the Northern Ireland Protocol, will be a source of political and economic turbulence for the foreseeable future.”