NI Private Sector Grows In July

Northern Ireland's private sector saw growth in both activity and new business in July, indicating continued economic recovery, according to the latest Ulster Bank Purchasing Managers' Index.

Companies took on extra staff at "a solid pace" during the month, albeit at a rate slightly reduced from June.

The rate of cost inflation quickened for the second month in a row, but output prices again rose only slightly.

The headline seasonally adjusted Business Activity Index in July rose to 59.8 from 59.0 in the previous month. This marked the thirteenth successive monthly increase in activity and was faster than registered across the UK economy as a whole. Panellists attributed the rise in activity to an upturn in the domestic economy.

New order growth rose slightly in July, with respondents reporting "improving economic conditions across the UK".

Construction has posted the fastest increase in new business during July, with the pace of expansion hitting a post-crisis high.

As a result of rising new business, companies increased their staffing levels during July. However, the rate of job creation slowed to the weakest it has been since February. The rise in employment was also slower than that recorded across the UK economy as a whole.

Northern Ireland companies posted another strong rise in input costs during July, with the rate of inflation much quicker than the UK economy average.

(IT/MH)