Business activity in Northern Ireland fell at the fastest rate of all 海角视频 regions last month, according to the latest Purchasing Managers Index from Ulster Bank.
The keenly watched report showed the reintroduction of lockdown measures and movement restrictions have pared back activity while rising costs have put pressure on margins.
Northern Ireland saw by far the fastest rate of cost inflation, hitting the highest level for over 12-and-a-half years, as the cost implications of importing goods post Brexit began to bite.
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Manufacturing was the sector that posted the highest rate of cost inflation, but it was evident in all sectors. Due to these costs, firms raised their own prices at the sharpest rate in the survey’s history.
Meanwhile, the province also saw the steepest decline in payroll numbers and one of the biggest falls in backlogs of work of all 12 海角视频 regions.
Northern Ireland’s PMI was pegged at 40.2 compared to a 海角视频 average of 49.6 and slightly higher than the 38.3 in January. A reading above 50 signals growth, and the further above the 50 level the faster the expansion signalled.
Just four 海角视频 regions – London, Yorkshire and Humber, West Midlands and the North West recorded a reading above 50.
On the upside, the survey found businesses in Northern Ireland were more positive about the future, Richard Ramsey, Chief Economist Northern Ireland, Ulster Bank, said.
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“The one real positive in the latest Ulster Bank NI PMI is that Northern Ireland businesses are more optimistic about business activity in 12 months’ time than they have been since the pandemic began,” he said. “Whilst this is encouraging, it doesn’t change the fact that business conditions now are challenging to say the least.”
Looking ahead, Mr Ramsey said business will look to the vaccine rollout and government for direction.
“Whilst conditions will remain challenging for some time, confidence will likely continue to build as the vaccine roll-out continues,” he said. “But the key trigger for a recovery in some sectors, particularly retail and services, is going to be when the current restrictions are lifted.”