Private sector growth in the North will remain buoyant in the coming months, according to the latest Ulster Bank purchasing managers' index report.

The report shows that both new business and backlogs of work all rose at accelerating rates in June.

Price pressures increased during the month, with costs rising at the sharpest rate in seven months and charges at the fastest pace in three months.

Employment growth in the North is outperforming almost all other parts of the UK.

Ulster Bank's Northern Ireland economist Richard Ramsey said retail was the only sector bucking the growth trend, with the sector recording a notable contraction in employment following 14 months of growth.

"Further employment growth in construction and services can be expected in the second half of 2007 given that backlogs within Northern Irish firms continue to grow at an increasing rate," Mr Ramsey said.

The rate of growth in outstanding workloads at firms in the North is higher than the UK average.

The rising volume of these backlogs plus incoming business encouraged more firms to take on additional staff in June, the report shows.

About a fifth of all companies took on new employees.