Cost-cutting and job-shedding were top of the agenda for private sector firms in the North last month, according to new research which highlights a further deterioration in economic conditions.
The latest Ulster Bank Purchasing Managers’ Index (PMI), which examines the performance of the local manufacturing, service, construction and retail/wholesale sectors, shows a “marked reduction” in private sector business activity during February.
According to the PMI, firms in Northern Ireland struggled to win new business orders last month, which in turn resulted in a sharp decline across all sectors. Richard Ramsey, chief economist for Northern Ireland at Ulster Bank, said the continued slump in the North was at odds with the pattern of growth registered at UK level.
The latest Ulster Bank research comes as the Federation of Small Business also warns this week that weak domestic demand and rising costs were threatening the survival of small businesses.
A new survey of its members shows although there has been a “dramatic increase” in business confidence, access to finance remains a major problem.
Wilfred Mitchell, FSB policy chair in Northern Ireland, said: “Whilst an upturn in confidence is very welcome, we cannot ignore the challenges that we face.”
