Business activity in Northern Ireland expanded in July for the 40th consecutive month, though the pace of growth slowed in line with the rest of Europe, the Ulster Bank Purchasing Managers' Index (PMI) has shown.

"The pace of increase in activity slowed everywhere in July," said Pat McArdle, chief economist at Ulster Bank, referring to markets in the US, eurozone and UK.

"Northern Ireland was no exception but gained some comfort from the fact that the deceleration was faster in the UK, causing the gap between the two to narrow."

In July, the index in the North stood at 56.7, compared with 56 in the UK as a whole. Any reading above 50 signals an improvement while figures below that threshold signal a contraction. In June, the difference between the two was 1.8 points.

In the North, the rate of growth in economic activity - broadly unchanged from June - was led by new business wins as well as higher employment, which has risen in each month since March.

However, the data also showed that margins continue to remain under pressure, with higher input prices underpinning the most marked rise in prices charged for 21 months in July.