Northern Ireland's private sector continued to grow solidly during March, the latest figures show.

The Ulster Bank purchasing managers' index (PMI) for Northern Ireland, which measures business activity, posted a figure of 53.8 for March.

The index benchmark is 50. Any reading over this figure indicates growth, while anything less than 50 indicates that output is falling.

The March out-turn was below the 54.7 record that the index reached in January.

Ulster Bank's chief economist, Pat McArdle, said the omens were good for the region. "With the euro zone at last showing signs of renewed vigour, and the Republic, if anything, accelerating, these trends should continue," he said.

However, continued high costs occupied the minds of businesspeople in the North during the month.

Input costs in the region ran at 63.7, ahead of the 61.3 recorded in February and January's figure of 61.

"Metals, energy, fuel and construction materials were commonly cited as being up in price since last month," yesterday's report said.

But businesses did not pass on all of these increases to their customers.

Prices charged were 51.7, down from the 52.2 reading in February, but ahead of the 51.3 recorded in January.

There was good news on the jobs front, with indicators showing that the private sector was hiring during March, with the index reaching 50.1. Jobs were lost during the first two months of the year.