Retailers in Northern Ireland enjoyed their strongest performance since the start of the credit crunch in November as tens of thousands of the Republic’s shoppers poured across the border in search of bargains, a report on business activity said today.
Emergence from recession brings to an end a 23-month slump in activity with all sectors bar construction improving in November, the Ulster Bank survey suggested.
“Clearly this has been driven by the influx of shoppers from the Republic of Ireland. However, recent RoI budget measures concerning VAT and lower alcohol duties will begin to erode the current north/south price differential,” the bank's chief economist Richard Ramsey said.
Retailers recorded their greatest level of activity since August 2007 while the services sector also reported growth.
Mr Ramsey added: “With output prices falling for the last 14 months in a row and input costs rising for nine consecutive months the health of Northern Ireland’s corporate finances remains a growing concern.
“The pressure on profit margins eased slightly during the month but this was not the case with the manufacturing sector.”