The easing of lockdown and the fast approaching onset of summer has heralded a return to growth for the Northern Ireland economy.
That鈥檚 according to a widely watched PMI report from Ulster Bank which revealed a bounce back in business activity in April for the first time since September 2020 and the fastest rate of growth in 33 months.
The survey chimes with anecdotal evidence which suggests companies across a range of sectors are enjoying an uplift in demand as lockdown restrictions are lifted across the 海角视频 and Ireland.
Retail, manufacturing and services all reported an increase in both output and employment but some of the sectors most vulnerable to the impact of the pandemic 鈥 services and construction posted a further contraction in new orders.
However, perhaps related to the impending reopening of hospitality, the services sector saw the fastest rate of job creation since 2007 while manufacturing increase headcount at the fastest pace since 2007.
The survey showed that complications related to Brexit appear to be impacting firms with export orders showing another sizeable fall, while imports of raw materials also seem to have been hit.
In tandem, Northern Ireland firms have reported a record rise in input costs stemming from higher prices for raw materials and fuel coupled with increased shipping costs.
鈥淐learly, local firms have benefited from a notable pick-up in demand,鈥 Richard Ramsey, Chief Economist at Ulster Bank in Northern Ireland, said. 鈥淏ut this improvement is occurring alongside significant supply chain disruption.
鈥淎dapting to the new NI Protocol is one aspect of the increasing cost of doing business. However, it isn鈥檛 the only source of disruption. Economies around the world have seen a lengthening in suppliers鈥 delivery times due to the pandemic and worldwide shipping issues such as a shortage of shipping containers.鈥
Mr Ramsey said both supply chain disruptions and 鈥渋ntense鈥 inflationary pressures aren鈥檛 set to ease anytime soon.
鈥淭he key question is for how long? Despite these challenges local firms are the most optimistic about business activity in twelve months鈥 time than they have been since the pandemic began.
鈥淏ut whilst increasing activity is one thing, increasing profitability may prove to be much more difficult. This is particularly the case in a tight labour market, something that a range of other surveys have highlighted.鈥
