Private sector in North continues to expand

THE North’s private sector economic output remained strong last month, maintaining the impressive performance recorded during the second half of 2003, according to new figures.

The monthly Purchasing Managers’ Index (PMI) recorded increased activity for the 10th month in a row, driven by demand from both domestic and export markets.

Pat McArdle, chief economist, Ulster Bank, which commissioned the report, said the private sector continued to expand but the rate of increase slowed when compared to previous months. Margins remained under pressure, which had the effect of curtailing plans by managers to hire more staff. Both input and output costs rose at relatively sharp rates. But margins suffered because output prices failed to rise by as much as those charged for inputs, such as raw materials and labour.