August saw sharp rises in activity and new business levels in Northern Ireland, despite a slow in private sector growth, according to the latest Ulster Bank Purchasing Managers Index.

Firms continued to increase staffing numbers throughout the month, while a further rise in input costs was recorded. However, the rate of output price inflation was only marginal, the bank said.

The headline seasonally adjusted Business Activity Index posted 56.7 in August, down from 59.8 in July and signalling the weakest expansion of activity since March.

Output in the Northern Ireland private sector has now increased in 14 successive months; however, growth locally was slower than the UK average.

Weaker increases in activity were recorded in the services and retail sectors, but manufacturers and construction firms saw growth pick up.

Improving economic conditions and stronger confidence helped to support growth of output. New business increased for a fifteenth straight month. Despite this, the rate of expansion in new orders also eased and was the slowest since last October. New export orders rose at a modest pace.

There was a rise in staffing levels in August, with the rate of job creation only slightly slower than seen in July. All four sectors posted increases in employment, led by manufacturing.

Input prices increased, which the bank said could be down to a rise in staff costs. The rate of cost inflation in Northern Ireland remained much stronger than seen across the UK. The fastest rise in input prices was recorded in the construction sector.

(IT/CD)