NI business activity falls to a seven-and-a-half-year low, new survey reveals

By Q Radio News

Business activity has fallen to a seven-and-a-half-year low, according to a newly published survey. 

The Ulster Bank PMI report - which collects data on orders, exports and staffing within the private sector here - is considered a reliable indicator of economic performance.

Ulster Bank chief economist Richard Ramsey says the desire of firms to maintain staffing levels in the current business climate comes at a cost to profit levels.

"Firms therefore seem willing to take a hit to their profits in the short-term in the hope that conditions will improve once there is greater certainty around the situation with Brexit."

Mr Ramsey warned this could prove to be overly-optimistic.

"Even if a Brexit deal is passed, there is still much to be decided around the new relationship with the EU and how any new arrangements would work."

The latest statistics published were published last month and reveal that NI companies reported the sharpest decline in new orders since May 2012.

Brexit uncertainty was cited as the main reason for the fall with respondents claiming there was a wariness among customers to commit to new projects.

Retail and construction were the hardest hit, however the report shows all four sectors reported a fall in output with orders in construction falling at the sharpest rate in 7.5 years

Retailers saw orders fall at the fastest rate since 2009 with employment also decreasing slightly.