NORTHERN Ireland's exports are being affected by the strength of sterling, a new survey as found.

According to Coopers & Lybrand, the main issues facing Northern Irish business are political stability, public expenditure cuts and the BSE crisis.

In its quarterly regional trends survey, the accountancy company said there is a contrast between confidence levels in Northern Ireland and other UK regions. Combined with the strength of sterling, the overall picture is disappointing, managing partner Mr Stephen Kingon said.

The survey also found that the Northern Ireland economy slowed during the latter part of 1996, compared with most other regions in the UK.

On the positive side, house prices in the north have outpaced the rest of the UK by more than 50 per cent.