Business activity in Northern Ireland returned to growth mode last month, according to the latest PMI report from Ulster Bank.
The widely-watched indicator showed an improvement across all 10 indicators in February, boosted by strength in the province’s main export markets with company’s reporting the first rise in output and new orders in 10 months. Meanwhile, private sector firms also reported signs of improving demand, a marginal accumulation in work backlogs, increasing confidence and higher staffing levels.
Retail and manufacturing both posted rises in activity, although services and construction remained in decline.
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Given the survey was carried out ahead of the announcement of the Windsor Protocol, chief economist at Ulster Bank Richard Ramsey said he expected the positive performance to extend to March. Meanwhile, expectations amongst businesses for output in 12 months’ time hit a one year high, the highest level since the start of the war against Ukraine.
“The latest PMI survey could be summed up in one word – improvement,” he said. “All ten indicators of local business conditions improved in February relative to the previous month.
"The recovery in international demand aided a return to growth in output and orders for manufacturers. Meanwhile, retail’s recent resurgence continued.
“The completed rollout of the £600 energy grant, coupled with cross-border shoppers from the Republic of Ireland, continues to provide a boost for the retail sector. Conversely, construction and services posted a further fall in output last month.
He was relatively confident about activity in the coming months.
“This latest improvement occurred ahead of the unveiling of The Windsor Framework, so we may see further rises in sentiment in the coming months if it is accepted more universally than the NI Protocol was. Time will tell.”